Bitcoin has faced significant pressure recently, as the price fell below $108,000 after attempts to hold $110,000 as a support level.
This decline occurred against the backdrop of broader market factors, including the rise of the Consumer Price Index (CPI) in the US to 2.4%. Despite these challenges, investor sentiment remains bullish, which could contribute to a price recovery.
Bitcoin has investor support
Market sentiment for Bitcoin remains optimistic as net positions on exchanges show continued outflows over the month. Despite failing to overcome the barrier at $110,000, investors continue to add to their Bitcoin holdings, expecting further price growth. This buying pressure indicates confidence in Bitcoin's long-term potential, despite short-term setbacks.
Although Bitcoin failed to establish support at $110,000, the lack of significant selling activity is a bullish indicator. Investors are actively accumulating tokens, indicating their confidence in Bitcoin's price recovery despite recent challenges. The macroeconomic momentum of Bitcoin remains strong, supported by key price 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 significantly above these levels, suggesting that the cryptocurrency has gained significant market strength.
This significant deviation from key moving averages signals a potential bullish turn in the near future. While short-term fluctuations are possible, the long-term outlook for Bitcoin remains positive, supported by these key indicators. As a result, investors hope that Bitcoin's price will recover, especially after establishing a stable support level. Bitcoin's price will recover
Bitcoin's price has currently decreased by 2.3% over the last 24 hours, trading at $107,594. This decline occurred following the report on the Consumer Price Index in the US, which showed an increase of 2.4% year-on-year, with a rise of 0.1% in May. As a result, Bitcoin fell below $108,000, but this decline appears to be temporary.
The likelihood of Bitcoin continuing to decline is low. With bullish investor sentiment and a lack of large-scale selling, Bitcoin is expected to recover by the end of the week. Overcoming the $108,000 level will push Bitcoin towards $110,000. If $110,000 is established as support, Bitcoin may approach its all-time high of $111,980. However, if overall macroeconomic conditions worsen, Bitcoin may face further declines. If it falls below the support at $106,265, Bitcoin could test lower levels around $105,000. A break below this support would nullify the bullish outlook and could signal further weakness in the market.#BinanceSquare #Binance #crypto #BTC110KSoon?