Why Everyone Will Panic When Bitcoin Hits $106K (And Larry’s Already Annoyed)

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Key Takeaways:

  • Bitcoin’s doing that thing where it breaks out of a channel, but not in the sexy way anyone hopes for. It’s going bearish, and guess what? Suddenly, everyone’s talking about “profit taking” at $106,000. Are we all day traders now? Where did these people come from?

  • Meanwhile, if the Consumer Price Index is lower than expected, Bitcoin might shoot up. If it’s higher—whoops!—Bitcoin could fall below $100K faster than you can say “why did I buy that NFT?” Just classic.

So, Bitcoin (yeah, that little digital coin everyone’s mother suddenly has an opinion about) spiked to $105,800 on May 12. Did it stay there? Nope. Took a 3% nosedive during the New York session to $101,400. Like my self-esteem after I try to parallel park. On the shorter timeframes, it was wiggling around in an “ascending channel” like it had somewhere important to be, then broke down and disappointed everyone. Classic Bitcoin.

Alphractal—great name, by the way, sounds like a robot that lost a chess match—points out that as Bitcoin crawls back to the $106,000 “resistance,” people are itching to dump for profits. You know who you are. I see you. According to Joao Wedson, some CEO who probably checked his portfolio at a red light this morning, whales are circling and ready to hit “sell” the minute regular folks start feeling greedy. 🐋💸

And if that’s not enough, there’s a “long” squeeze risk lurking. (Not a yoga pose.) Over $3.4 billion of these leveraged long positions could go poof if things slip to $100,000. Sorry, did I say “if”? I meant “when.” The $100K mark is like that one ex you keep stalking on social media—Bitcoin just can’t let it go.

CPI data looms as Bitcoin traders de-risk

Why the sudden identity crisis for Bitcoin? Enter the CPI data. Last time, March’s CPI came in at 2.4%—that’s lower than expected, but nobody was happy anyway. Now, April’s number is forecasted to be about the same because apparently oil producers all went on vacation and wage growth is chilling out like a retiree in Boca.

If the CPI is low, maybe the Fed cuts rates next year and everyone acts like it’s party time for risk assets. If not, and the number’s high, the dollar flexes, Bitcoin cries, and everyone blames Jerome Powell for ruining their summer. Again. 🦅💥

If the chart still looks like a horror movie after CPI, people are fixated on this “fair value gap” (which, by the way, is just code for ‘I hope I guessed the right line to draw’)—it’s hovering between $100,500 and $99,700. Go lower and you’ve got another gap at $98,680 to $97,363. That’s an 8% correction from the recent highs. Ouch, but hey, at least you can tell people you’re “long-term bullish” while you sob quietly into your coffee. ☕️😭

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2025-05-13 01:48