Bitcoin Drops Below Key Resistance on Rate Cut Doubts

Bitcoin (BTC) has fallen approximately 2.1% over the last 24 hours, now trading at around $106,958 on Binance.

Key Takeaways:

* Bitcoin (BTC) has slid approximately 2.1% in the past 24 hours, trading at around $106,958 on Binance.

* The cryptocurrency failed to breakout above $108K as Fed rate cut expectations for June 18 are off the table, undermining bullish sentiment.

* If Bitcoin loses the $106K support level, it could slide toward $100K.

Bitcoin Drops Below Key Resistance as Rate Cut Odds Spike

Bitcoin (BTC) slid approximately 2.1% over the last 24 hours, trading at around $106,958 on Binance. The cryptocurrency failed to breakout above $108,000.

The June 11 CPI report revealed inflation at 2.4% YoY (core at 2.8%), cooling but still above expectations. As a result, markets now see a 99.8% chance of the Fed keeping rates steady next week. With only two potential cuts penciled in for the rest of 2025—likely starting in September—crypto momentum has taken a hit.

Investors Await PPI Release

Next in line is the Producer Price Index (PPI) for June 12, with economists forecasting a +0.2% MoM rise (core +0.3%). Any surprise could amplify price action, considering the historical volatility during this release.

Bitcoin continues to face stiff resistance between $108,800–112,000, rendering it unable to fully reclaim upside momentum. Technically, it’s attempting a bull flag pattern, but the RSI has dropped to ~56, indicating weakening bullish energy.

Key Technical Levels:

Support: $106,000 – A daily close below this level threatens trend damage.

Resistance: $108,800–112,000 – Critical for regaining upward momentum.

Market Outlook: Analysts Perspective

Michael van de Poppe, founder of MN Capital, expressed caution on X:

“Bitcoin couldn’t break through the $110,000 area… As long as Bitcoin stays above $106,000, then there's nothing to worry about.”

If the support holds, BTC might rebound and test its all-time highs near $112K. However, a breakdown might trigger a pullback into the bull flag channel, or potentially deeper toward the $100K mark.