Why Did Bitcoin Dip Below $108K? Market Sentiment Hints at Imminent Rebound
Bitcoin's Temporary Retreat Amid Macroeconomic Headwinds
The ethereum price prediction 2040cryptocurrency market witnessed notable volatility this week as Bitcoin retreated from its $110,000 support level, currently trading around $107,594. This 2.3% daily decline coincides with fresh economic data showing the US Consumer Price Index (CPI) rising to 2.4% annually, with 0.1% monthly growth in May.
Accumulation Patterns Defy Short-Term Weakness
Blockchain analytics reveal a fascinating divergence between price action and investor behavior. While BTC struggles to maintain key psychological levels, exchange net position changes demonstrate persistent capital outflows throughout June. This accumulation trend suggests sophisticated market participants view current prices as attractive entry points rather than exit signals.
The absence of substantial selling pressure becomes particularly noteworthy when examining Bitcoin's pricing models. The digital asset continues trading significantly above critical moving averages including:
- 111-day moving average (DMA)
- 200 DMA
- 365 DMA
Historical patterns indicate such deviations often precede bullish momentum resumption, as these technical levels have consistently served as reliable market strength indicators.
Technical Outlook: Recovery Signals Emerge
Market structure analysis reveals two potential scenarios for Bitcoin's near-term trajectory. On the bullish side, reclaiming $108,000 could catalyze momentum toward the crucial $110,000 resistance level. A decisive break above this threshold might open the path to retesting the all-time high near $111,980.
Conversely, should macroeconomic uncertainty persist, Bitcoin may test immediate support at $106,265. While a breach below this level could extend declines toward $105,000, the current accumulation patterns and technical positioning make sustained downward movement appear less probable.
The cryptocurrency's ability to maintain positions above key moving averages while institutional interest remains robust suggests the recent pullback may represent a healthy consolidation rather than the beginning of a bearish trend reversal.