Bitcoin Price Correction After Reaching $106,000: Analysis and Outlook

Jakarta, Pintu News – Bitcoin (BTC) experienced a price drop after hitting an intraday high of $105,800 on May 12, 2025. The drop was triggered by profit-taking from investors and concerns ahead of the release of the United States Consumer Price Index (CPI) data.

Profit Taking and Correction Risk

After reaching its peak, BTC experienced a 3% drop to $101,400 (approximately Rp1.67 billion). Technical analysis shows that BTC broke out of an ascending channel pattern, indicating a potential further correction.

Data from the Alphractal analytics platform shows that the $106,000 level is an “Alpha Price” zone where long-term investors are likely to take profits. In addition, there is a risk of liquidation of $3.4 billion in long positions if the price drops to $100,000, which could accelerate the price decline.

Also Read: Bitcoin Approaches Rp1.74 Billion: Trend Analysis and Challenges May 2025

Influence of US Inflation Data

Investors are also looking forward to the release of US CPI data on May 13, 2025. Previous data showed a decline in inflation from 2.8% in February to 2.4% in March. If the latest CPI data is lower than expectations, it could push BTC prices up on hopes of an interest rate cut by the Federal Reserve. Conversely, if inflation is higher than expected, the US dollar may strengthen and pressure BTC prices.

Short-term Outlook and Price Support

If the selling pressure continues, the area between $100,500 and $99,700 becomes an important support zone based on four-hour chart analysis. The next support zone is between $98,680 and $97,363, which represents a correction of about 8% from the recent highs. However, if BTC manages to hold above $100,000 and the CPI data is supportive, there is potential to resume the uptrend and retest the $106,000 level. Consolidating above this level could pave the way for a new price record.

Also Read: 3 Altcoins that Catch Analysts’ Attention Amid Positive Market Sentiment: Significant Growth!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Biraajmaan Tamuly / Cointelegraph. Bitcoin profit taking at $106K the first stop before new all-time BTC price highs. Accessed May 13, 2025
• Featured Image: Generated by AI