Bitcoin price will see ‘short-term correction’ before $140K: Analysts

Key takeaways:

• Bitcoin price may dip toward the $100,000-$104,000 range before new highs.

• CPI data on June 11 could trigger volatility, with higher inflation hurting Bitcoin.

• BTC is forming bullish cup-and-handle and bull flag patterns targeting $140,000.

After last week’s volatility fueled by the Trump-Musk public breakup, Bitcoin (BTC) price has established a range between $103,800 and $106,900 over the last three days.

With BTC failing to demonstrate a clear directional bias in the daily time frame, analysts said the price may dip lower before reaching new all-time highs.

Will CPI data fuel Bitcoin’s next correction?

The US Consumer Price Index (CPI) is due for reading on Wednesday, with markets fearing that Trump’s tariffs add pressure on market prices. 

Market analysts project the US CPI to rise 0.3% month-over-month and 2.3% year-over-year. Core CPI, excluding food and energy, is forecasted to increase 0.3% month-over-month and 2.9% year-over-year.

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A print showing increasing inflation could reduce Fed rate cut possibilities, potentially adding headwinds to BTC price.

“Inflation data in the week ahead could unleash volatility,” said private wealth manager Swissblock in a June 9 post on X. 

Swissblock analysts explained that although Bitcoin bulls are “slowly rebuilding structure and regrouping,” a “short-term test of the lower range around $104,000 looks likely.”

Similar sentiments were shared by analyst Mickybull Crypto, who pointed out that the appearance of a head-and-shoulders pattern on the daily chart anticipates a BTC price drop to $101,500. The analyst said:

“Short-term correction, then new all-time highs.”

As Cointelegraph reported, $100,000 remains a key level to watch because if it fails to hold, BTC price may see a deeper correction as it moves toward clusters of liquidity sitting below it.

Bitcoin bulls still in control

Other Bitcoin analysts said that any pullback in price would be temporary, as the asset’s upside remains intact in higher time frames.

Bitcoin has not relented since “breaking back above its bull market support band,” trader Daan Crypto Trades said in a June 8 post on X, adding:

“Overall, the high time frame trend still remains very clean.”

It is important for Bitcoin’s price to hold onto the bull market support band currently at $95,000, the trader said, adding, “The uptrend has lasted for 900+ days now, which is usually when you want to be on the more cautious side of things.”

For technical analyst SuperBro, the fact that Bitcoin has held above the previous highest weekly close from 2021 for four consecutive weeks and has not dropped below the five-weekly EMA since early May suggests that bulls are fully in control.

“Once it breaks the trendline from 2021, the next leg up should quickly reach $140-150K”

Bitcoin’s indicators hint rally to $140K next

From a technical perspective, the BTC/USD pair has been forming a cup-and-handle and a bull flag pattern on the weekly chart, each indicating massive gains.

In the cup-and-handle scenario, Bitcoin’s price action suggests a potential breakout above the $109,000 neckline, with a technical target near $143,000, implying a 35% gain.

The bull flag pattern, on the other hand, indicates a potential breakout toward $143,300, as shown in the chart below.  

As Cointelegraph reported, Bitcoin’s rally to $140,000 is plausible, backed by an array of fundamental, onchain and technical indicators.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.