- Bitcoin sits just 3% below a major breakout point, with bulls eyeing $112K and strong ETF inflows fueling market optimism.
- Analysts say holding $74K support and rising demand from Coinbase premium could spark a fast rally if resistance is broken.
- Despite bullish momentum and higher lows, traders remain cautious as mixed signals from MACD hint at possible short-term pullback.
Bitcoin is just 3% away from a potential breakout that analysts call the most important in its history. Crypto Michael says the market could soon explode with “extreme velocity,” warning that every short position might get liquidated. This statement aligns with growing bullish sentiment, as Bitcoin trades near $108,000, its highest level in months. Momentum keeps building, and the entire crypto market appears to be gearing up for a major rally.
Strong Inflows and Market Sentiment Strengthen the Case
Daan Crypto Trades points out that Coinbase has maintained a steady premium since the recent rebound. This metric often signals strong U.S. investor demand. Moreover, ETF inflows continue to pour in, adding significant institutional weight behind the rally. Besides, the premium held even during Middle Eastern geopolitical tensions. This reinforces the market’s underlying strength.
However, Daan warns of one key risk. If Bitcoin stalls despite high inflows, it may signal a local top. That has happened before, so traders should remain cautious despite the bullish energy.
Technical Indicators Show Mixed Signals
Ted’s chart shows that Bitcoin faces a decisive test at $108,870. This level aligns with a long-standing descending trendline that’s limited BTC gains since late 2024. The daily chart reveals two previous rejections near $107,000. Hence, bulls must clear this resistance to sustain the rally.
Source: Ted
The MACD indicator has flipped bullish. However, diverging momentum signals suggest that further confirmation is needed. The histogram shows declining strength, but green arrows on the chart suggest renewed buyer interest. Bitcoin has held the $74,000 support zone multiple times. It continues to print higher lows throughout the correction phase. This market structure confirms bullish strength despite the looming resistance.
If Bitcoin breaks the trendline cleanly, it may rally fast toward the $112,000 psychological level. However, failure to break out could lead to a retest of lower zones. Consequently, volume and price action will determine Bitcoin’s next big move.