Bitcoin Targets $112,000 as ETF Inflows Fuel 3% Breakout

Bitcoin is currently positioned just 3% below a critical breakout point, with bullish investors targeting a price of $112,000. This optimism is fueled by strong inflows into exchange-traded funds (ETFs), which are adding significant institutional support to the market. Analysts suggest that if Bitcoin can hold the $74,000 support level and continue to see rising demand, particularly from platforms like Coinbase, it could spark a rapid rally once resistance is broken.

Despite the bullish momentum and the formation of higher lows, traders are exercising caution. Mixed signals from the Moving Average Convergence Divergence (MACD) indicator suggest a possible short-term pullback. The MACD has flipped bullish, but diverging momentum signals indicate that further confirmation is needed. The histogram shows declining strength, although green arrows on the chart suggest renewed buyer interest. Bitcoin has held the $74,000 support zone multiple times and continues to print higher lows throughout the correction phase, confirming bullish strength despite the looming resistance.

Technical analysis reveals that Bitcoin faces a decisive test at $108,870, a level that aligns with a long-standing descending trendline that has limited BTC gains since late 2024. The daily chart shows two previous rejections near $107,000, indicating that bulls must clear this resistance to sustain the rally. If Bitcoin breaks the trendline cleanly, it may rally quickly toward the $112,000 psychological level. However, failure to break out could lead to a retest of lower zones, making volume and price action crucial determinants of Bitcoin’s next significant move.

Analysts like Crypto Michael have warned that the market could soon explode with “extreme velocity,” suggesting that every short position might get liquidated. This aligns with the growing bullish sentiment as Bitcoin trades near $108,000, its highest level in months. The momentum continues to build, and the entire crypto market appears to be gearing up for a major rally. However, Daan Crypto Trades cautions that if Bitcoin stalls despite high inflows, it may signal a local top, a scenario that has occurred before. Therefore, traders should remain cautious despite the bullish energy.