Cryptocurrencies displayed signs of consolidation on Wednesday morning as the market turned its attention towards the latest Consumer Price Inflation data report, due at 8 AM ET.

The crypto market, known for its volatility, has been closely watching for any shifts in the economic landscape.

Top movers: Among the major cryptocurrencies, Bitcoin showed resilience, remaining above the critical $105,000 level. Trader Jelle highlighted the importance of this support, suggesting that as long as Bitcoin manages to stay above $109,000, the market could be setting the stage for price discovery.

Chart analyst Ali Martinez identified a key support zone for BTC between $106,090 and $102,770, emphasizing that breaking this range could have significant implications for momentum.

In a broader market perspective, analyst Michael van de Poppe observed a bearish divergence in Bitcoin dominance, an indicator that tracks Bitcoin's share of the total cryptocurrency market capitalization. This divergence, according to van de Poppe, could be a sign of an upcoming trend reversal, potentially leading to increased strength in altcoins.

As Bitcoin navigated a risky zone, with a potential pullback from the red supply area, Altcoin Sherpa issued a cautionary note. Despite this, he remains bullish on higher time frames, suggesting that any dips may present buying opportunities, at least until a decisive breakdown occurs.

Issuing a bearish view, trader Roman identified several red flags that could foreshadow a significant drop in Bitcoin price. These included macro and local bearish divergences, weak price action, and strong distribution signals, along with overbought stochastic indicators.

"This time it feels different, and it might catch a lot of people in a deep sleep," Roman stated, hinting at the possibility of an unexpected price movement.