Bitcoin Surges 3% to $108,120 as Institutional Inflows Drive New Cycle Highs

Bitcoin's price has surged to $108,000 this week, with analysts predicting new cycle highs ranging from $123,000 to $162,000. Several technical indicators suggest the start of a new rally, as charts converge and historical patterns emerge, preparing traders for the next significant breakout.

Crypto Patel developed a complete-cycle framework, illustrating how Bitcoin has transitioned from accumulation to manipulation and is now moving towards growth. According to Patel, Bitcoin's price remained relatively inactive between 2022 and early 2024, forming a wide-ranging accumulation base. However, by mid-2024, institutions began re-entering the market, driving Bitcoin's price to $107,000 by January 2025, similar to the initial leg of the 2020–2021 rally. This surge was attributed to a 73% increase following institutional inflows, with Patel estimating a potential shift to $162,000 in this cycle. The chart also indicated two significant zones of institutional entry, with the latter forming after the June 2025 price base at around $96,000, marked by volume increases and a subsequent rounded-base breakout. Analysts believe this marks the beginning of an institutional phase, as the price stabilizes above $105,000.

CryptoWZRD highlighted that Bitcoin's price recently broke out of a falling wedge structure, confirming a bullish reversal pattern. This breakout pushed Bitcoin's price from the $91,000 zone to $108,000. However, the latest daily close was slightly bearish, leaving room for either continuation or a short-term retest. The critical resistance level is at $110,400; a daily close above this level would likely validate the next leg higher to the $120,000 level. Conversely, $105,500 serves as a crucial support level, as it marks the breakout point of the wedge. A breakdown below this level could renew downside pressure with targets near $100,000. Additionally, WZRD warned about potential geopolitical risks over the weekend and noted that a breakdown in Bitcoin dominance could renew altcoin momentum. If Bitcoin's price remains stable above support, the bullish structure continues to favor long positions toward $120,000.

Bitcoinsensus identified a large-scale bullish megaphone pattern on Bitcoin's price chart, spanning several months. This pattern is characterized by a narrowing price range with high highs and low lows, typically completed by a powerful breakout in the opposite direction of the previous trend. Currently, Bitcoin's price is testing the upper resistance of this megaphone, suggesting an imminent breakout move. A clear break above touch point five would trigger a target of $123,000. The 50-day SMA has also been aiding the setup, serving as dynamic support since March 2025. This combination of the megaphone structure and moving average trendlines indicates further bullish momentum. If Bitcoin's price closes above $110,500 this week, analysts believe the target range around $123,000 will be tested soon.

Sentiment data indicates that the Bitcoin leverage ratio across all exchanges has reached a new yearly high at 0.27, suggesting an increased risk appetite among traders. Large moves in higher leverage are usually preceded by elevated levels of leverage, particularly in cases involving good breakouts. On-chain insights reported a major whale moved 80,000 BTC on July 4 after 14 years of dormancy. The wallet, containing BTC bought in 2011 between $0.78 and $3.37, transferred its full balance to new addresses but did not sell. The portfolio is currently valued at $8.6 billion. Meanwhile, Bitcoin has traded in the last month from a low of $97,500 to a current high of $108,120, reflecting a 3% gain.