- U.S. inflation rose just 0.1% in May, easing market fears but staying above the Fed’s 2% target.
- Technical analysis showed that Bitcoin was likely to leap higher.
The recent inflation news was a slight positive for the market.
The Consumer Price Index (CPI) rose by 0.1% for the month of May, and the annual inflation rate was 2.4%.
Core CPI—which strips out food and energy—also increased 0.1%, landing below forecasts of 0.3%. Year-on-year, Core CPI stood at 2.8% against the 2.9% estimate.
Interestingly, apparel prices, which were expected to jump due to tariffs, saw a decline instead. It marked the fourth straight month of cooler-than-expected inflation.
Still, with inflation holding above the Fed’s 2% target, rate cuts remained off the table, despite political pressure from President Trump.
Can Bitcoin rally to $200k?
There were plenty of uncertainties when gauging the potential top for BTC, and what events could shape its run in the coming months.
With tariffs, even predictions in the short term were extremely tricky.
Technical analysis showed that the long-term prospects of Bitcoin were bullish. On the weekly chart, the price was above the 20 and 50-week moving averages.
That alone kept long-term momentum intact.
Its OBV moved past the December 2025 high, signaling steady buying volume after the retracement in March and April. The CMF agreed and climbed above the +0.05 mark to indicate heavy capital inflows.
The price action showed a bullish structure, with the price making a new high past the previous weekly close high at $104.4k. This was a sign that the swing structure was bullish.
The fair value gap (cyan) at $98k-$100.7k was a key demand zone that was tested earlier in June.
But here’s the danger zone…
The momentum was bullish on the daily chart as well. Another FVG on this time (white) was spotted, reaching from $106.5k to $108.3k. Bitcoin tested this demand zone on Thursday, but had not yet fallen below it.
A daily session close below $106.5k would be the first sign of trouble, and a move toward $100k-$102k could follow thereafter.
Until then, the BTC demand, combined with reduced profit-taking, meant holders anticipated much higher prices.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
