Bitcoin May Have Upward Potential with Low Inflation and Technical Indicators

Bitcoin is maintaining its upward trend with lower-than-expected inflation data from the US, indicating that the cryptocurrency market is resilient despite economic uncertainties.

May inflation data showed only a slight increase of 0.1%, which somewhat alleviated concerns in the markets. However, inflation continues to remain above the Federal Reserve's 2% target, and this situation continues to affect monetary policy decisions.

According to COINOTAG's technical analysis, indicators such as On-Balance Volume (OBV) and Chaikin Money Flow (CMF) support the ongoing buying momentum in Bitcoin, strengthening the bullish outlook.

The relatively low inflation in the US supports Bitcoin's rise, and technical data, along with the cautious optimism of market participants, points to more profit potential.

Low Inflation and Technical Signals Support Bitcoin's Rise

In May, the US Consumer Price Index (CPI) showed a slight increase of 0.1%, while annual inflation stood at 2.4%. This rate is close to the Fed's target but slightly below market expectations. This calm inflation environment has led investors to turn to assets like Bitcoin for protection against inflation risk. The fact that Bitcoin is trading above significant moving averages on weekly charts indicates that the upward trend continues. In particular, the demand zone created in the price range between $98,000 and $100,700 effectively absorbs selling pressure, forming an important support area.

Technical Analysis Shows Critical Levels for Bitcoin

Technically, Bitcoin's On-Balance Volume (OBV) indicator surpassing the peak in December 2025 is a strong accumulation signal indicating that buyers are active in the market. The Chaikin Money Flow (CMF) indicator rising above +0.05 confirms significant capital inflow into the market and supports the rise. On the other hand, the area between $106,500 and $108,300 stands out as a critical resistance zone on daily charts. Bitcoin has tested this area several times but has not fallen below these levels. If the daily close occurs below $106,500, a correction towards the range of $100,000 to $102,000 may occur. This area is considered a key support for the continuation of the upward trend.

Inflation Trends and The Impact of Fed Policies on The Bitcoin Market

Although inflation continues to remain above the Federal Reserve's 2% target, the slowing CPI increase in May has eased interest rate hike expectations. This creates a complex picture for Bitcoin investors, as monetary policy uncertainties and geopolitical risks remain. The Fed's cautious interest rate policy increases Bitcoin's potential to attract capital as an independent store of value if inflation stabilizes without tightening. Market players should closely monitor changes in inflation and Fed decisions, as these developments could be decisive for Bitcoin's price.

Investor Perspective and The Future of Bitcoin Amid Economic Uncertainties

Investor sentiment is showing cautious optimism. Decreased profit realizations reflect confidence that Bitcoin can reach higher price levels. The alignment of macroeconomic indicators with technical signals suggests that Bitcoin is well-positioned to take advantage of current market conditions; however, key support levels must be maintained. Traders should be cautious, as a close below Bitcoin's critical support points could weaken momentum. Regularly obtaining data from reliable analysis sources like COINOTAG can help investors make healthier decisions in changing market conditions.

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