Key Points
- U.S. inflation increased by 0.1% in May, staying above the Federal Reserve’s 2% target.
- Technical analysis indicates bullish long-term prospects for Bitcoin.
In May, inflation in the U.S. saw a modest rise of 0.1%, assuaging market anxieties yet remaining above the Federal Reserve’s 2% target.
The Consumer Price Index (CPI) also experienced a 0.1% increase for May, with the annual inflation rate at 2.4%.
Details on CPI and Core CPI
Core CPI, which excludes food and energy, also saw a 0.1% increase, falling short of the anticipated 0.3%. Year on year, Core CPI was at 2.8% against the estimated 2.9%.
Contrary to expectations of a rise due to tariffs, apparel prices experienced a decline. This marked the fourth consecutive month of lower-than-expected inflation.
Despite inflation exceeding the Federal Reserve’s 2% target, rate cuts were not considered, even amidst political pressure from President Trump.
Bitcoin’s Potential Rise
The potential peak for Bitcoin was filled with uncertainties, as well as the events that could influence its trajectory in the upcoming months.
Technical analysis indicated a bullish long-term outlook for Bitcoin. The cryptocurrency’s price was above the 20 and 50-week moving averages on the weekly chart, maintaining long-term momentum.
Bitcoin’s OBV surpassed the December 2025 high, indicating steady purchasing volume after the March and April retracement. The CMF also climbed above the +0.05 mark, suggesting significant capital inflows.
Bitcoin’s price action displayed a bullish structure, with the price surpassing the previous weekly close high at $104.4k, indicating a bullish swing structure.
The fair value gap at $98k-$100.7k was a crucial demand zone tested earlier in June.
The momentum remained bullish on the daily chart. Another FVG reaching from $106.5k to $108.3k was observed. Bitcoin tested this demand zone on Thursday but did not fall below it.
A daily session close below $106.5k would signal the first sign of trouble, potentially leading to a move toward $100k-$102k.
Until then, the demand for Bitcoin, coupled with reduced profit-taking, suggests holders anticipate much higher prices.
Please note that the information presented does not constitute financial, investment, trading, or any other type of advice and is solely the writer’s opinion.
