Bitcoin’s price has surged in recent days, fueling hopes of a new all-time high (ATH). Currently, BTC hovers just below the crucial $110,000 resistance level. However, external factors like the upcoming CPI report could determine whether Bitcoin sustains its rally or faces a pullback.
Investor Sentiment Shifts to Greed
Market optimism is growing, with trader sentiment entering the “Greed” zone. While this often signals bullish momentum, it can also indicate an overbought market. Historically, extreme greed precedes price peaks, suggesting a potential reversal.
Yet, Bitcoin has defied this pattern before, continuing its climb despite high greed levels. This uncertainty leaves traders cautious as BTC tests key resistance.
CPI Report: A Major Market Catalyst
Bitcoin’s next move hinges on the Consumer Price Index (CPI) report, due June 11. Analysts expect a 0.2% monthly increase, pushing annual inflation to 2.5%—up from April’s 2.3%. If inflation exceeds forecasts, market uncertainty could rise, pressuring Bitcoin’s price.
Recent sell-offs (indicated by rising red bars on charts) add to bearish risks. Should the CPI disappoint, BTC may drop toward support levels at $108,000 or even $106,265, erasing recent gains.
Bitcoin’s Price at a Critical Juncture
Currently trading at $109,480, Bitcoin briefly surpassed $110,000 but faces resistance. A bearish CPI report could trigger a decline, while better-than-expected data might propel BTC past $110,000 toward its ATH of $111,980.
What’s Next for Bitcoin?
- Bullish Scenario: If CPI data is favorable, Bitcoin could reclaim $110K as support and target new highs.
- Bearish Scenario: Higher inflation may fuel a sell-off, pushing BTC toward lower support levels.
Investors should watch the CPI closely—Bitcoin’s next big move depends on it.
