Bitcoin experienced a brief dip below $108,000 following the release of US Consumer Price Index (CPI) data showing inflation at 2.4%. However, strong underlying investor demand suggests the cryptocurrency could soon rebound towards the $110,000 mark.
Market sentiment remains decidedly bullish, evidenced by consistent outflows of Bitcoin from exchanges. This ongoing accumulation pattern signals long-term investor confidence, with many viewing the recent price dip as a strategic buying opportunity rather than a reason for sustained selling.
Technical indicators reinforce the positive outlook. Bitcoin continues to trade above its key moving averages – the 111-day, 200-day, and 365-day – providing strong support for the current price level and suggesting potential for further gains.
Analysts note that a decisive break above the $108,000 resistance level could pave the way for a retest of Bitcoin’s all-time high near $111,980. Conversely, a drop below $106,265 would be viewed as a sign of potential near-term weakness.
The combination of persistent accumulation, positive technical structure, and resilient sentiment points towards the possibility of renewed upward momentum targeting $110,000 in the near term.