Bitcoin Price Prediction: BTC Eyes $106k Resistance as Bullish Sentiment Returns

Highlights:

• Bitcoin is range-bound but edging toward the $106,345 resistance
• Positive data from the US could send Bitcoin price through resistance
• $110k could be a key target in the short term if resistance is broken

Bitcoin (BTC) is in the green today after a rally that started late Wednesday, January 15. In the last 24 hours, Bitcoin price has gained by 2.23%. At the time of going to press, Bitcoin was trading at $99,178.74. Bitcoin trading volumes have also shot up in the day, up by 10.75% to stand at $57.51 billion. 

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Bitcoin’s rising bullish momentum is evident in the fact that in the last 24 hours, Bitcoin has briefly pushed through the much coveted $100k price level. It indicates that bullish sentiment is building up after the $92k support held earlier in the week.

US CPI Data Triggers Bullish Sentiment Around Bitcoin Price

The rising bullish sentiment around Bitcoin can be attributed to inflation data coming out of the US. Last week, the US released data that suggested there would be no rate cuts this year. However, yesterday’s CPI data pointed to an easing of core inflation, which could support rate cuts. The data triggered a rally across the financial markets, with Bitcoin leading the cryptocurrency market in the rebound.

The data showed that the December Consumer Price Index (CPI) was up by 0.4% compared to the previous month. This was higher than analyst expectations of 0.3%. Looking at inflation yearly, there was an increase of 2.9%. This data was in line with analyst expectations but was slightly higher than November’s readings of 2.7%.

At the same time, US core inflation, which does not take into account food and energy, increased by 0.2% in December. This was in line with analyst expectations and was slightly lower than November’s readings of 0.3%. At the same time, annualized core inflation dropped to 3.2%, much lower than analyst expectations of 3.3%. The latest inflation data has excited markets, including Bitcoin, because it is an indicator that inflation is finally coming down.

Bond Yields Correction Bullish for Bitcoin

The data also triggered a sharp correction in bond yields and the US dollar. This is a big deal for Bitcoin and other risky assets as it is likely to increase investors’ appetite for risk. The reason is that investors are interpreting the latest CPI data as an indicator that inflation could continue declining, despite inflation having been a challenge over the past year.

JUST IN: 🇺🇸 US CPI rises to 2.9% ahead of Trump’s inauguration, as #Bitcoin breaks $99K 🔥 pic.twitter.com/LPrSlFCXId

— Swan (@Swan) January 15, 2025

Analysts also believe that Bitcoin could get boosted by a combination of several other data metrics that have been released recently. The CPI data combined with the Producer Price Index could see Bitcoin break out of its current range-bound trading and make new highs above $110k in the short term.

Upcoming Trump Inauguration Could Sustain Momentum

Another factor that could add to Bitcoin’s momentum, given by CPI data, is Trump’s inauguration next week. The incoming administration is widely expected to be pro-crypto. News is emerging that Trump will likely issue executive orders on the first day aimed at stifling cryptocurrency rules. This, along with the fact that the incoming SEC chairman is highly pro-crypto, could help Bitcoin sustain the momentum it has built up in the last 24 hours.

🇺🇸 TRUMP: “#Bitcoin and crypto will skyrocket like never before, even beyond your expectations.”

6 days until the first-ever pro-crypto administration takes office. 🔥 pic.twitter.com/tkGp5HibZC

— Cointelegraph (@Cointelegraph) January 14, 2025

Technical Analysis – Bitcoin Price Targets Resistance as Bulls Take Control

Bitcoin’s charts already suggest a potential short-term rally. Since bears were rejected at $89,369 four days ago, Bitcoin has been on a sustained rally.

Bitcoin is currently trending toward the $106,345 resistance, supported by strong market fundamentals. If the $106,345 resistance is broken ahead of the Trump inauguration, then Bitcoin could rally to prices above $110k in the short term.

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