Bitcoin Price Could Dip Before Potential Rally Toward $140K Amid Inflation Concerns

• Bitcoin price is poised for a short-term correction before potentially surging past its all-time highs, driven by key technical patterns and upcoming economic data.

• Market analysts highlight the critical role of the US Consumer Price Index (CPI) release on June 11, which could trigger volatility and influence Bitcoin’s trajectory.

• According to COINOTAG sources, Bitcoin is currently forming bullish cup-and-handle and bull flag patterns, signaling a possible rally toward $140,000.

Bitcoin may dip to $100K before rallying to $140K, with CPI data on June 11 set to impact volatility and market direction.

Impact of June 11 CPI Data on Bitcoin Price Volatility

The upcoming US Consumer Price Index (CPI) report scheduled for June 11 is a pivotal event for Bitcoin investors. Market expectations suggest a month-over-month increase of 0.3% and a year-over-year rise of 2.3% in the CPI, with core inflation metrics excluding food and energy also projected to climb. Higher inflation readings could diminish the likelihood of Federal Reserve rate cuts, thereby exerting downward pressure on Bitcoin’s price in the short term.

Swissblock, a private wealth management firm, emphasized that inflation data could “unleash volatility” in the crypto markets. Their analysis points to a probable short-term test of Bitcoin’s lower trading range near $104,000 before any sustained upward momentum resumes. This cautious stance is echoed by technical analysts who observe bearish head-and-shoulders formations on daily charts, forecasting a correction to approximately $101,500.

Technical Patterns Suggest Temporary Pullback Before Breakout

Despite short-term bearish signals, Bitcoin’s broader technical outlook remains constructive. The formation of a cup-and-handle pattern on the weekly chart indicates a potential breakout above the $109,000 resistance level, targeting gains near $143,000. Similarly, a bull flag pattern corroborates this bullish thesis, suggesting a strong upward move once consolidation phases conclude.

These patterns, combined with Bitcoin’s sustained support above key moving averages and historical resistance levels, reinforce the narrative that any near-term price dips are likely to be temporary corrections within a larger bullish trend.

Long-Term Bullish Momentum Remains Intact

Leading crypto traders and analysts maintain confidence in Bitcoin’s long-term uptrend. Daan Crypto Trades highlights that Bitcoin’s price has consistently held above its bull market support band, currently around $95,000, sustaining an upward trend that has persisted for over 900 days. This longevity underscores the resilience of Bitcoin’s bullish structure despite intermittent volatility.

Technical expert SuperBro further notes that Bitcoin’s four consecutive weekly closes above its previous all-time high and consistent support above the 5-week exponential moving average (EMA) signal strong bullish control. According to SuperBro, breaking the 2021 trendline could catalyze a rapid advance toward the $140,000 to $150,000 range.

On-Chain and Fundamental Indicators Support Upside Potential

Beyond technical analysis, fundamental and on-chain data provide additional confirmation of Bitcoin’s growth prospects. Metrics such as declining supply on exchanges, increasing institutional interest, and robust network activity collectively suggest a healthy demand environment. These factors, coupled with favorable macroeconomic conditions post-CPI release, could fuel Bitcoin’s next significant rally.

Investors are advised to monitor liquidity clusters and key support levels closely, as these will be critical in determining the sustainability of any price movements in the coming weeks.

Conclusion

Bitcoin’s price action in the near term is expected to reflect a delicate balance between inflation-driven volatility and strong underlying bullish momentum. While a short-term correction toward the $100,000 to $104,000 range appears likely, technical patterns and fundamental indicators point to a subsequent rally potentially pushing Bitcoin above $140,000. Market participants should remain vigilant around the June 11 CPI release, as this event will be instrumental in shaping Bitcoin’s trajectory in the months ahead.