Bitcoin approaches a critical $110,000 resistance level amid shifting market dynamics, with investor sentiment entering the ‘Greed’ zone signaling potential overbought conditions. The cryptocurrency’s immediate trajectory hinges significantly on macroeconomic catalysts, particularly the upcoming Consumer Price Index (CPI) report.
The June 11 CPI release is forecasted to show a 0.2% monthly increase for May, pushing the annual inflation rate to 2.5%. This data could trigger substantial volatility, with a higher-than-expected reading potentially driving Bitcoin down to $108,000, while lower inflation figures may propel it beyond the all-time high of $111,980.
Investor caution is already evident through heightened selling activity, reflected in rising red bars on exchange net position charts. Bitcoin currently trades near $109,480, with sustained gains contingent on both the CPI outcome and its ability to decisively breach and hold above the $110,000 threshold.
Market participants remain watchful for signs of whether current sentiment will fuel a breakout or precipitate a correction as macroeconomic forces intersect with technical resistance levels.