Bitcoin Surges 2.8% Breaking 5-Day Range Institutional Interest Drives Momentum

Bitcoin's price experienced a significant surge on Wednesday, rising by 2.8% and breaking through a narrow five-day range. This move marked the cryptocurrency's biggest gain in six days, catching many traders off guard. The price action indicated a breakout from a period of consolidation, with Bitcoin retesting its all-time high of $112,000. This level had previously acted as a resistance point, but the recent price action suggests that bullish momentum is driving the market higher.

Prior to this breakout, Bitcoin had been trading within a tight range between $107,500 and $109,600. The volatility had been compressing as bulls attempted to push the price above key resistance levels. Technical indicators showed that Bitcoin was trading above key moving averages, with a critical support level at $110,624. This technical setup indicated that the market was under bullish control, with traders considering further upside potential.

The breakout was driven by institutional interest, particularly from spot ETFs, which provided the necessary momentum for the price to surge past $112,000. The price briefly reached an all-time high of $112,022 before retreating slightly. As of the latest update, Bitcoin was trading near $111,300, holding above the psychological level of $110,000. This price action suggests that the trend is now under the control of buyers, despite some technical and macroeconomic confusion.

The next resistance level that traders are eyeing is at $112,568. If Bitcoin manages to break above this level, the next potential targets could be around $115,800 or even $121,000. However, if the price fails to sustain its upward momentum, it could retreat to the support area between $109,300 and $108,800. The 50-day moving average, currently around $108,800, could act as a support level and prevent a further decline. If the price moves below this level, the next notable support would be at $106,700, where buyers are expected to re-enter the market.

The technical analysis indicates that Bitcoin has surpassed key Fibonacci levels, with the next big target for traders at $112,568. If the price extends further, it could challenge the short-term value of $120,000. The increased market activity, with trading volume up by 78.67% and open interest rising by 8.19%, suggests that more traders are entering the market with strong positions. The open interest-weighted funding rate of BTC is at 0.0013%, indicating a stable sentiment despite potential near-term volatility. The medium to long-term outlook remains bullish, with Bitcoin poised to set new records in the coming weeks.