Bitcoin has faced a lot of pressure recently, with prices falling below $108,000 after struggling to maintain $110,000 as a support level.
The decline follows a wider range of market factors, including a rise in the US Consumer Price Index (CPI) at 2.4%. Despite these challenges, investors’ sentiment remains bullish and could drive a price recovery.
Bitcoin has investor support
Bitcoin’s market sentiment remains optimistically dominated as exchange net positions show consistent outflows throughout the month. Despite not violating the $110,000 barrier, investors continue to add to their BTC holdings in hopes of a higher price. This purchase pressure shows confidence in Bitcoin’s long-term potential despite a short-term setback.
Bitcoin was unable to establish support at $110,000, but the lack of key sales activities is a bullish indicator. Investors have accumulated a large amount of coins. This suggests that despite recent challenges, investors are confident in Bitcoin’s price recovery.
Bitcoin’s macro momentum remains strong, supported by major pricing models such as the 111-day moving average (DMA), 200 DMA, and 365 DMA. These levels have historically served as a powerful indicator of market momentum. Bitcoin is now well above these levels. This suggests that cryptocurrencies have built a prominent market strength.
This important departure from the main moving average indicates a potential bullish turn in the near future. Short-term fluctuations are possible, but Bitcoin’s long-term outlook remains positive and supported by these key metrics. As a result, investors are hoping that Bitcoin prices will recover, especially when establishing a stable level of support.
BTC prices bounce back
Bitcoin prices currently fall 2.3% in the last 24 hours, trading at $107,594. DIP came after the US CPI report increased 2.4% year-on-year, followed by a 0.1% increase in May. As a result, Bitcoin fell below $108,000, but this decline is only temporary.
It is unlikely that Bitcoin will continue to decline. Due to bullish sentiment from investors and lack of massive sales, Bitcoin is expected to recover before the week ends. Violating the $108,000 level will result in Bitcoin $110,000. If $110,000 is protected as support, Bitcoin can approach an all-time high of $111,980.
However, if the broader macroeconomic conditions deteriorate, Bitcoin could drop even further. Below the $106,265 support, Bitcoin can test the level of around $105,000. A break below this support could negate bullish outlook and indicate further weaknesses in the market.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
