On June 11, the price of Bitcoin jumped to $110,400. That huge jump came after the release of new U.S. inflation data last week, which revealed a slower-than-predicted increase in consumer prices. As of June 12, the crypto is trading just under $107,000. It is nearing its all-time high of $111,970, reached on May 22. Although we have seen a bit of volatility, Bitcoin’s underlying structure is very strong, with several indicators signaling that we still have room to run.

Bitcoin itself is at a monumental crossroads today. It has pivoted away from local supply and is now chasing demand up to $106,000-$107,000. Protecting this level is very important to the underlying market structure of Bitcoin. If it’s able to stay above this range, we might be in for some very bullish action going forward! If this support isn’t maintained, a price drop is highly probable, possibly filling a CME futures gap. Investors and traders are intently watching these levels to assess the short-term direction of Bitcoin.

The high time frame (HTF) target for Bitcoin continues to be found at a range between $114,000 and $116,000 for the month. Bullish investors would view this new target as a major point of focus. On the flip side, an aggressive breakdown of Bitcoin below the $100,000 level would majorly dent its bullish premise. How these three levels interact with one another will most likely determine how Bitcoin trades over the next few days.

Technical Analysis and Market Structure

Bitcoin’s recent price action has BTCUSD is at a critical juncture within its market structure. As with 106,000-107,000, this is not merely a price point, but rather an important marker for where futures may head over the longer term. If able to hold above this range, that would imply strength remains in control, but inability to do so may indicate the potential for a deeper retracement.

The rejection of local supply shows that there is very strong buying pressure at these lower levels which further aligns with the bullish sentiment. Don’t be fooled by the CME futures gap fill. These gaps are magnets for bad prices. These levels are important to traders and should be closely monitored with potential strategy implementation in mind.

The HTF target of $114,000 to $116,000 would be a major hurdle for Bitcoin. Reclaiming this target would be considered a successful retest and a sign that the bullish trend is still fully intact, likely allowing for additional upside to follow. A drop below $100,000 would break the present bullish pattern and imply a shift to extra bearish sentiment.

Options Market Dynamics

The Bitcoin options market offers further clues into investor sentiment and possible price targets. Open interest in Bitcoin options has skyrocketed to $36.7 billion, the highest level seen this month. This surge in open interest is a clear indicator of increased activity and speculation around the future price movements of Bitcoin.

There is an interesting cluster of call options at the $140,000 strike price. This indicates that a considerable amount of investors is wagering on Bitcoin hitting this mark someday. This largely bullish positioning has the potential to create upward momentum for Bitcoin’s price as the expiration date draws nearer.

Bitcoin’s put-to-call ratio has been recalibrated, now sitting at 0.60. This change is a sign of a somewhat weaker bullish bias from the previous session compared to recent sessions. Though still a sign of bullish sentiment, the revision down is a sign of hesitance creeping in amongst options traders. The Cash to Assets Ratio The cash to assets ratio is a great measure of the market’s overall sentiment and risk.

Broader Market Context and Short-Term Volatility

Confirmation of easing inflation in the U.S. had set up a bullish undertone in the market. Yet, Bitcoin’s price fell by 1.7% in the past 24 hours. This drop is symptomatic of what happens with other risk assets upon the unveiling or discovery of global uncertainty. Additionally, investors are looking for places to hide in the short term. All of these aspects can add volatility and affect Bitcoin’s overall price in the immediate future.

Geopolitical tensions, macroeconomic uncertainties, and the landscape of regulatory developments, including promotion versus prevention, add to the risk environment. One response investors often take to these stresses is transferring their resources into safe havens. These are often allocated to safer government bonds or cash, putting downward price pressure on risker assets such as Bitcoin in the short term.

The $114,000 to $116,000 range is an important short-term target for Bitcoin to flip. Getting to this milestone will require a steady hand to steer clear of all the bigger market headwinds. Investors need to stay sharp and keep these outside influences in mind when investing.