Bitcoin (BTC) prices have surged in recent days, rekindling hopes of hitting a new all-time high.

Based on the latest price movements, BTC is now just one step away from breaking the resistance level at $110,000.

Bitcoin (BTC) price is now just one step away from breaking the resistance level at $110,000. However, despite its strong momentum, the crypto may struggle to print a new ATH when considering external factors such as the soon-to-be-released CPI report and increased selling behavior.

On June 11, Bitcoin edged up to IDR 1,783,308,000 (around $109,737), marking a slight 0.27% gain in the past 24 hours. During the day, BTC dipped to a low of IDR 1,763,480,218 before peaking at an impressive IDR 1,794,131,847.

According to CoinMarketCap, Bitcoin’s market capitalization now stands at around $2.18 trillion, with trading volume in the last 24 hours falling 5% to $54.57 billion.

Trader sentiment towards the Bitcoin market has recently shown an upward trend, shifting towards the Greed zone, which could be a warning that the asset may be nearing its peak.

When Bitcoin entered the Greed zone, there were concerns that the asset wasoverbought.

Historically, situations like this are often a sign that the Bitcoin price is nearing its peak and could soon experience a reversal.

Although current market sentiment favors the continuation of the uptrend, Bitcoin often remains on the rise despite being in the greed zone. These mixed signals make investors indecisive, as typical patterns of market peaks do not always occur consistently.

As Bitcoin price approaches the resistance level of $110,000, this high optimism could also trigger a price correction in the near future.

Bitcoin’s current macro momentum is heavily influenced by the Consumer Price Index (CPI) report scheduled for release on June 11.

CPI for May is expected to rise by 0.2%, which would push the year-over-year (YoY) inflation rate from 2.3% in April to 2.5%. This increase could add uncertainty to the market, especially if inflation turns out to be higher than expected.

In addition, the recent increased selling behavior in the market suggests caution on the part of investors. The chart shows a rising red bar, reflecting an increase in Bitcoin selling activity.

These factors, coupled with the upcoming CPI data, have the potential to trigger bearish sentiment, which could ultimately lower the price of Bitcoin.

Investors may adjust their position to expect that rising inflation could negatively impact Bitcoin’s growth, especially if market expectations are not met.

Bitcoin price is currently trading at $109,480, having slid down from the crucial resistance level of $110,000. Although BTC briefly broke through this point in the last 24 hours, overall market indicators are signaling a potential decline.

With trader sentiment increasing and the CPI report approaching, Bitcoin could struggle to maintain its present position.

If the CPI report disappoints investors' anticipation, Bitcoin price is likely to drop to the next support level of $108,000 in response to the negative sentiment generated by the potential rise in inflation.

The inability to break the $110,000 level could be the first sign of a longer downward trend in prices, with a possible correction towards $108,000 or even $106,265, erasing most of the recent gains.

Conversely, if the CPI report shows lower-than-expected YoY inflation – e.g. 2.1% compared to 2.3% – then Bitcoin could experience a price recovery. In this scenario, if Bitcoin manages to make $110,000 a support level, then the price could potentially rise towards the all-time high (ATH) of $111,980 and higher.

A positive CPI report is likely to revive investor confidence, push Bitcoin price to new highs, and erase fears of a price drop.