Bitcoin Hits $106,500 but Traders Doubt Rally’s Strength
Bitcoin briefly surged past $106,500, giving bulls their first reason for optimism in weeks. Yet market sentiment remains cautious — few traders believe the $100,000 support zone has formed a reliable bottom.
Technical Picture: $106,636 Resistance in Focus
Analyst CrypNuevo outlined key technical levels for the week ahead, pointing to resistance near $106,636 and support in the $101,000–$102,000 range. The upper boundary of the current trading corridor extends to $114,000–$116,000, suggesting potential for a breakout if momentum continues.
However, volumes remain muted, and open interest in derivatives has not yet confirmed a broad shift in sentiment. “We’re still seeing cautious long entries, but not the conviction that typically signals a sustainable rally,” one derivatives desk commented. The short-term structure suggests consolidation before any decisive move.
Macro Context: CPI and PPI in the Spotlight
With the U.S. government shutdown now nearing resolution, traders’ attention is turning back to inflation. The Consumer Price Index (CPI) data will be released on Thursday, November 13, followed by Producer Price Index (PPI) figures on Friday. Both reports could influence expectations for the Federal Reserve’s next policy steps.
“If CPI surprises on the downside, we might see risk assets — including Bitcoin — extend their recovery,” analysts at QCP Capital noted in a separate commentary. “But if inflation remains sticky, the market could quickly unwind this week’s gains.”
Investor Sentiment: Relief or Dead Cat Bounce?
Despite reclaiming the six-figure mark, sentiment across crypto social platforms remains subdued. Traders continue to treat each upswing as a potential “dead cat bounce,” reflecting deep-seated caution after months of volatility. Data from on-chain analytics show continued outflows from spot ETFs and minor selling pressure from early holders.
Still, the broader setup looks healthier than in previous drawdowns. The $100,000 zone has held through multiple retests, and funding rates remain neutral — conditions that could favor gradual accumulation rather than panic selling.
Outlook: All Eyes on Inflation Data
The next decisive move will likely hinge on Thursday’s CPI print. A softer reading could reignite bullish momentum and push Bitcoin toward the $110,000–$114,000 resistance band. Conversely, any inflation surprise could trigger another correction back toward the $101,000 support area.
For now, traders are bracing for volatility — and patience may once again be the most profitable position.
Editorial Team — CoinBotLab