Bitcoin Price Fluctuates Amid Inflation Concerns, Analysts Predict 35% Gain

Bitcoin (BTC) price has been fluctuating between $103,800 and $106,900 over the past three days, following a period of volatility triggered by a public breakup. Analysts suggest that the price may experience a short-term correction before reaching new all-time highs. According to the analysts, the price may dip toward the $100,000-$104,000 range before continuing its upward trajectory.

One of the key events that could trigger volatility in the Bitcoin market is the release of the US Consumer Price Index (CPI) data on June 11. Market analysts project that the US CPI will rise 0.3% month-over-month and 2.3% year-over-year, with core CPI, excluding food and energy, forecasted to increase 0.3% month-over-month and 2.9% year-over-year. A print showing increasing inflation could reduce the possibilities of Fed rate cuts, potentially adding headwinds to BTC price. Swissblock, a private wealth manager, noted that although Bitcoin bulls are slowly rebuilding structure and regrouping, a short-term test of the lower range around $104,000 looks likely.

Mickybull Crypto, a popular analyst, also shared similar sentiments, pointing out that the appearance of a head-and-shoulders pattern on the daily chart anticipates a BTC price drop to $101,500. The analyst suggested that this short-term correction would be followed by new all-time highs. It is important to note that $100,000 remains a key level to watch, as if it fails to hold, BTC price may see a deeper correction as it moves toward clusters of liquidity sitting below it.

Despite the potential for a short-term correction, other Bitcoin analysts believe that any pullback in price would be temporary. Daan Crypto Trades, a popular trader, stated that Bitcoin has not relented since breaking back above its bull market support band, and the high time frame trend still remains very clean. The trader emphasized the importance of Bitcoin’s price holding onto the bull market support band currently at $95,000, adding that the uptrend has lasted for 900+ days now, which is usually when you want to be on the more cautious side of things.

SuperBro, a technical analyst, also noted that Bitcoin has held above the previous highest weekly close from 2021 for four consecutive weeks and has not dropped below the 5-weekly EMA since early May. This suggests that bulls are fully in control, and once it breaks the trendline from 2021, the next leg up should quickly reach $140-150K.

From a technical perspective, the BTC/USD pair has been forming a cup-and-handle and a bull flag pattern on the weekly chart, each indicating massive gains. In the cup-and-handle scenario, Bitcoin’s price action suggests a potential breakout above the $109,000 neckline, with a technical target near $143,000, implying a 35% gain. The bull flag pattern, on the other hand, indicates a potential breakout toward $143,300. According to the analyst's forecast, Bitcoin’s rally to $140,000 is plausible, backed by an array of fundamental, onchain and technical indicators.