Bitcoin May Recover Toward $110,000 Amid Rising US CPI and Strong Investor Sentiment

• Bitcoin experiences a dip below $108,000 amid a US CPI increase to 2.4%, yet strong investor buying pressure hints at a potential rebound toward $110,000.

• Market sentiment remains bullish with consistent Bitcoin outflows from exchanges and ongoing accumulation, reflecting investor confidence in its long-term value.

• According to COINOTAG, maintaining support at $106,265 is crucial for Bitcoin to recover and possibly retest its all-time high near $111,980.

Bitcoin dips below $108K following US CPI rise to 2.4%, but bullish investor sentiment and accumulation suggest a recovery toward $110K and beyond.

Investor Confidence Sustains Bitcoin Amid Market Volatility

Despite recent price fluctuations, Bitcoin’s market sentiment remains predominantly bullish. Exchange data reveals a steady outflow of Bitcoin, indicating that investors are withdrawing assets from exchanges to hold in private wallets. This behavior typically signals confidence in future price appreciation, as holders prefer to secure their assets rather than trade them. The persistent accumulation amid a challenging macroeconomic backdrop underscores a strong belief in Bitcoin’s long-term potential.

Although Bitcoin has struggled to maintain the $110,000 support level, the absence of significant sell-offs is a positive sign. Investors are strategically adding to their positions, suggesting that the current dip is viewed as a buying opportunity rather than a signal of weakness. This dynamic is crucial for sustaining upward momentum and could set the stage for a price recovery.

Technical indicators further support this optimistic outlook. Bitcoin is trading comfortably above its 111-day, 200-day, and 365-day moving averages, which historically serve as key momentum benchmarks. This positioning reflects underlying market strength and resilience, even in the face of short-term volatility. Such technical foundations are often precursors to sustained bullish trends, reinforcing investor confidence in Bitcoin’s trajectory.

Price Correction Presents Opportunity for Recovery Toward $110,000

Bitcoin’s recent 2.3% decline to approximately $107,594 coincides with the US Consumer Price Index rising to 2.4% year-over-year, reflecting inflationary pressures that momentarily weighed on market sentiment. However, this pullback appears to be a temporary correction rather than a reversal of the broader uptrend.

Market analysis suggests a low probability of further significant declines given the strong buying interest and lack of large-scale liquidation. Should Bitcoin reclaim the $108,000 threshold, it is poised to challenge the $110,000 resistance. Successfully establishing this level as support could catalyze a move toward the previous all-time high of $111,980, marking a critical milestone for market participants.

Conversely, a break below the key support level of $106,265 would raise concerns about potential weakness, possibly leading to a test of lower support near $105,000. Such a scenario would necessitate a reassessment of the bullish outlook and could indicate increased vulnerability to macroeconomic headwinds.

Conclusion

Bitcoin’s recent dip below $108,000 amid rising US inflation has tested market resilience but has not diminished investor confidence. The sustained accumulation and strong technical positioning suggest a likely recovery toward $110,000 and potentially the all-time high near $111,980. Maintaining critical support levels will be essential for this bullish momentum to continue. Investors should monitor these thresholds closely as they navigate the evolving macroeconomic landscape and capitalize on emerging opportunities.