If the CPI data is lower than market expectations, coupled with rising expectations for the Federal Reserve to cut interest rates, Bitcoin is expected to quickly rise above $105,000 and attempt to challenge $120,000. Continued institutional investment and inflows from ETFs provide support, significantly reducing the likelihood of falling below $100,000, with the probability expected to be less than 20%.
If a rebound in CPI strengthens the dollar, Bitcoin may retrace to the $97,000 to $99,000 range seeking support. However, MicroStrategy's $21 billion capital increase authorization injects confidence into the market, and with limited selling pressure from long-term holders, Bitcoin is expected to build a consolidation platform in the $90,000 to $110,000 range.
