Bitcoin continues to trade around the $110,500 level following a softer-than-expected CPI print of 3.0% versus 3.1% expected. While the data offered a brief sense of relief, Federal Reserve Chair Jerome Powell’s subsequent comments — emphasizing patience and reiterating that “inflation remains above target” — tempered expectations for any imminent policy shift. Liquidity conditions, as a result, remain constrained.
Technically, Bitcoin’s short-term structure suggests waning momentum. The $111K zone has repeatedly rejected upward attempts, with visible exhaustion in the form of upper wicks and declining follow-through on bullish candles. Red candle volume has been rising, signaling potential distribution rather than continuation.
Market sentiment appears divided. Open interest continues to climb, reflecting increased leverage, yet top trader positioning indicates that institutional participants are reducing exposure. This divergence underscores a familiar pattern: retail remains net long while professional traders hedge risk.
Key support lies at $109.7K, with potential downside targets at $107K and $105K should that level fail. A decisive break and close above $112.7K would be required to restore short-term bullish momentum.
Outlook:
While the CPI data provided momentary optimism, Powell’s reaffirmation of a cautious policy stance effectively neutralized it. Without fresh liquidity catalysts, Bitcoin’s current consolidation near $110K reflects a market losing directional conviction. Unless the Fed softens its tone, the risk of a sharp corrective move remains elevated.
