Bitcoin Nears $110,000 Resistance as CPI Report and Market Sentiment Could Influence Price Direction

• Bitcoin is nearing a critical $110,000 resistance level amid rising market optimism and the impending Consumer Price Index (CPI) report, which could dictate its next price movement.

• Investor sentiment has shifted into the “Greed” zone, signaling potential overbought conditions that may precede a price correction depending on inflation data outcomes.

• According to COINOTAG sources, a favorable CPI report could propel Bitcoin beyond its previous all-time high, while a disappointing inflation figure may trigger a pullback to $108,000.

Bitcoin approaches $110,000 resistance as rising CPI and market greed create uncertainty; a positive inflation report could push BTC to new highs or trigger a correction.

Bitcoin Investors’ Greed Rises Amid $110,000 Resistance Challenge

Bitcoin’s recent price surge has fueled increased optimism among traders, pushing sentiment into the Greed zone. This elevated bullishness often signals that the asset is becoming overbought, which historically precedes market tops and potential reversals. While this enthusiasm could sustain the rally, it also raises caution among investors who recognize the risk of a correction as BTC approaches the critical $110,000 resistance.

Market data shows that despite the Greed zone typically indicating a peak, Bitcoin has occasionally extended its upward momentum beyond these levels. This creates a nuanced environment where investors must weigh the potential for continued gains against the risk of a pullback. The current sentiment underscores the delicate balance between optimism and caution as Bitcoin tests this significant price barrier.

Bitcoin Sentiment. Source: Santiment

Impact of Upcoming CPI Report on Bitcoin’s Price Trajectory

The forthcoming Consumer Price Index (CPI) report, scheduled for release on June 11, is a pivotal factor influencing Bitcoin’s macro momentum. Forecasts predict a 0.2% increase in the CPI for May, which would elevate the year-over-year inflation rate from 2.3% to 2.5%. Such an inflation uptick could introduce volatility and dampen bullish sentiment, as higher inflation often leads to tighter monetary policies that can negatively affect risk assets like Bitcoin.

Investor caution is further evidenced by increased selling activity, as indicated by rising red bars on exchange net position charts. This suggests that some market participants are preemptively reducing exposure ahead of the inflation data, anticipating that elevated inflation could undermine Bitcoin’s recent gains.

Bitcoin Exchange Net Position Change. Source: Glassnode

BTC Price Poised Near All-Time High, Faces Key Support Levels

Currently trading at approximately $109,480, Bitcoin remains just below the crucial $110,000 resistance. Although BTC briefly surpassed this threshold within the last 24 hours, broader market indicators suggest potential headwinds. The combination of heightened trader greed and the uncertain CPI report outcome creates a scenario where Bitcoin’s ability to sustain gains is in question.

Should the CPI report reveal inflation higher than expected, bearish sentiment may intensify, pushing Bitcoin down to its next support around $108,000. A failure to break and hold above $110,000 could extend this downward pressure, potentially driving prices toward $106,265 and eroding recent advances.

Bitcoin Price Analysis. Source: TradingView

Positive CPI Data Could Catalyze New Bitcoin Highs

Conversely, if the CPI report surprises with a lower-than-anticipated inflation rate—such as a YoY figure of 2.1% instead of 2.3%—Bitcoin could capitalize on renewed investor confidence. In this scenario, the $110,000 level would likely transform from resistance into support, setting the stage for BTC to challenge and potentially surpass its all-time high of $111,980.

This bullish outcome would reinforce Bitcoin’s resilience against macroeconomic headwinds and could attract additional capital inflows, driving further price appreciation. Market participants should closely monitor the CPI release, as it represents a critical inflection point for Bitcoin’s near-term trajectory.

Conclusion

Bitcoin’s approach to the $110,000 resistance is marked by a complex interplay of rising investor greed and macroeconomic uncertainty tied to the upcoming CPI report. While elevated sentiment signals potential overbought conditions, the inflation data will be decisive in determining whether Bitcoin continues its ascent or faces a corrective phase. Investors are advised to remain vigilant, balancing optimism with prudent risk management as Bitcoin navigates this pivotal juncture.