BTC Pullback Expected Amid Hesitancy, $107K Target Emerges
Bitcoin (BTC) experienced a pullback from recent gains approaching the $110,000 mark, with traders expressing mixed views. While expectations of a new all-time high (ATH) persist, a correction period is viewed as necessary before further upside momentum can resume, according to market analysts.
Price Correction and Targets
Bitcoin sold off at the June 10 Wall Street opening, yielding approximately 1.5% from the daily high. Current price action, as of the last report, was centered near the $108,500 mark. Trading volume and chart indicators, including the Relative Strength Index (RSI), point towards a potential short-term consolidation phase.
Analysts suggest price targets could begin around $107,000, a reported ideal buying zone by some, before aiming for the higher six-figure milestone. Diving deeper, others identified a potential secondary test near $100,000 or even a third target at $98,000, depending on the depth of the consolidation.
“The first period of consolidation typically lasts a few days. Then, we’re going to have the next breakout above the ATH… Ideal zone to buy? I would estimate around $107,000-$ 108,000.”
Fuel for Hesitancy: Faint Diplomatic Signals
Following a day of US-China trade talks, initial enthusiasm spooked the broader market, including Bitcoin. QCP, a trading firm, characterized the outcome as lacking substantive breakthroughs, observing “global risk assets pause” despite vague affirmations from US officials.
This pause is seen as a prelude to a corrective phase. Given the weak signals on the diplomatic front, calls for consolidation align with broader market caution.
The Road Ahead – US Inflation Data
The upcoming US inflation data, particularly the May Consumer Price Index (CPI) and Producer Price Index (PPI) releases, is anticipated to be a critical determinant of market sentiment for the remainder of the week. These figures will inform expectations for potential Federal Reserve policy shifts.
Coinciding with the data releases, analysts see little anticipation for Federal Reserve action via interest rate cuts before September. Instead, the findings, along with President Donald Trump’s demands for earlier intervention, will offer further insights into future monetary policy. The Reuters economists’ poll reiterated a continuation of rate cuts into the third quarter.
Given the ambiguity surrounding both trade progress and incoming inflation data, the market “remain[s] in limbo,” according to QCP. Cautious investor sentiment is in place as market participants await clearer direction, mindful of the risk that ongoing uncertainty could translate into a negative risk sentiment for broader assets.
