Bitcoin (BTC) Price Prediction: BTC Will Bounce Back From Recent Dip, Targeting $110,000 Resistance

This drop follows broader market factors, including the rise in the US Consumer Price Index (CPI) to 2.4%. Despite these challenges, investor sentiment remains bullish

Bitcoin price has faced significant pressure recently, falling below the $108,000 level as it struggled to maintain the $110,000 barrier.

This follows broader market factors, including the US Consumer Price Index (CPI) data showing a 2.4% increase in May. However, despite these challenges, investor sentiment remains bullish, which could fuel a price recovery.

Bitcoin Has The Investors’ Backing

In the cryptocurrency market, Bitcoin is still handling the majority of the attention. With exchange net positions for BTC showing consistent outflows throughout the month, it is clear that investors have been in a buying mood.

Despite failing to breach the $110,000 barrier, investors continue to add to their BTC holdings, expecting further price gains. This buying pressure signals confidence in Bitcoin’s long-term potential despite short-term setbacks.

Although Bitcoin has been unable to establish support at $110,000, the lack of significant selling activity is a bullish indicator. Investors are accumulating coins heavily, which suggests that investors are confident in Bitcoin’s price recovery despite the recent challenges.

At the same time, Bitcoin’s macro momentum remains strong, supported by key pricing models such as the 111-day moving average (DMA), 200 DMA, and 365 DMA. These levels have historically acted as strong indicators of market momentum.

Currently, Bitcoin is trading well above these levels, which suggests the cryptocurrency has built notable market strength. This significant deviation from the key moving averages signals a potential bullish turn in the near future.

While traders can expect some short-term fluctuations in the market, the long-term outlook for Bitcoin remains positive, supported by these key indicators. As a result, investors are hopeful that Bitcoin’s price will recover, especially once it establishes a stable support level.

BTC Price Will Bounce Back

Bitcoin price is currently down by 2.3% over the last 24 hours, trading at $107,594. The crypto is down by 10.4% over the last seven days.

The dip occurred after the US CPI report for May showed a 2.4% year-over-year increase and a 0.1% rise from April.

This follows a 0.3% monthly increase in the core CPI, which excludes volatile food and energy prices. Economists polled by Dow Jones had anticipated a 0.4% monthly rise in the core CPI.

As a result, Bitcoin fell below the $108,000 level, but this decline appears temporary. The crypto is expected to face strong resistance at the $110,000 level, which could hinder further upward movement.

The likelihood of Bitcoin continuing its decline is low. With bullish sentiment from investors and the absence of large-scale selling, Bitcoin is expected to recover before the week ends.

Breaching the $108,000 level would push Bitcoin toward $110,000. If $110,000 is secured as support, Bitcoin could inch closer to its all-time high of $111,980.

However, should the broader macroeconomic conditions worsen, Bitcoin may face further declines. If it falls below the support of $106,265, Bitcoin could test lower levels around $105,000.

A break below this support would invalidate the bullish outlook and could signal further weakness in the market.