Key Insights: Bitcoin price jumped 2.9% to $104,771 after U.S. inflation dropped to 2.3%, the lowest since February 2021. BTC futures open interest rose 2.38% to $68.57B, signaling new capital inflow despite falling trading volume. RSI at 64.12 and MACD bullish crossover confirm trend strength, but $109K remains the key breakout level. Bitcoin (BTC) has surged above $104,000 following the release of the latest U.S. inflation data. This move has reignited bullish interest across crypto markets. However, analysts caution that unless Bitcoin breaches a key level of $109,000, the risk of correction remains. Market data and technical indicators show both strength and caution signals, making the $109,000 mark a critical threshold for the next move to a new all-time high. Bitcoin Climbs After Inflation Data, But Resistance Level Remains Key Bitcoin’s price rose to $104,771 on Monday, boosted by lower-than-expected U.S. inflation data. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 2.3% in April 2025, down from 2.4% in March. This marks the lowest inflation reading since February 2021. The inflation report strengthened expectations that the Federal Reserve could lower interest rates in upcoming months. Bitcoin responded quickly, gaining 2.9% within two hours of the data release. Spot trading volumes on Binance jumped 35% on the BTC/USDT pair during the same period. US CPI Other markets also reacted. Shares of Coinbase climbed 5.3% in pre-market trading, and S&P 500 futures rose 1.1%. However, despite the bullish sentiment, analysts emphasize that Bitcoin needs to break above $109,000 to confirm an extended rally. Market Structure Shows Momentum but Short-Term Risks Persist Bitcoin’s chart patterns show a bullish structure, with clear higher highs and higher lows. It has successfully turned the former resistance around $93,000 into a new support level, suggesting strong market momentum. This price action points to ongoing strength, but resistance remains ahead. Technical indicators further support the uptrend. The Relative Strength Index (RSI) stands at 64.12, well below the overbought level of 70. This means there is still room for further upside before momentum becomes overheated. Meanwhile, the MACD shows a confirmed bullish crossover, with a rising histogram and a widening gap between the MACD line and signal line. Source: TradingView Despite these signals, analysts continue to point at $109,000 as the level that will decide the next direction. Without a breakout above that line, Bitcoin may continue trading in a range or face renewed downward pressure. The market currently appears to be in a critical holding pattern. Now trading at $103,544.61, Bitcoin price is up 0.81% from the intra-day low and around 5% away from its all-time high of $109,114. Derivatives and Sentiment Suggest Bullish Bias but Traders Remain Cautious CoinGlass data shows rising bullish sentiment among institutional traders. Open interest in Bitcoin futures increased by 2.38% to $68.57 billion, while options open interest rose 2.50% to $39.89 billion. Despite this, futures trading volume fell by 13.71%, and options volume declined by 9.64%, suggesting caution among short-term traders. Top traders on Binance showed a long/short ratio of 1.595, signaling strong long exposure. Retail sentiment remains cautious, with more short positions dominating across various platforms. This difference in positioning could lead to a short squeeze if the price climbs. Source: CoinGlass In the last 24 hours, $84.61 million in liquidations occurred, with $28.27 million from shorts. Most short liquidations happened within the first hour after the CPI data release, suggesting many traders were not positioned for the quick move. Break Above $109,000 Needed to Confirm Uptrend Continuation The $109,000 mark is now regarded as the level of Bitcoin resistance. Technical indicators indicate increased buyer activity, with increasing +1.27K in volume delta and expanding Bollinger bands implying certain price enhancement. Bitcoin is above the basis and envelope bands, still showing bullish momentum. Analysts caution that a Test of $109,000 will trigger a market rotation. According to EGRAG Crypto, a decrease in the dominance of BTC as the altcoins rise might indicate a cycle top, potentially before a larger reversal by mid-2026. Source: X With Bitcoin trapped in consolidation beneath all-time highs, traders are eagle eyeing an escape. Further market sentiment may have varying sentiments based on the upcoming statements from the Federal Reserve officials and FOMC minutes. A bold step over $109,000 is still vital in confirming the next bullish break.