Bitcoin Nears $108,870 Resistance Amid Strong ETF Inflows

Bitcoin is approaching a critical resistance level near $108,870, indicating a potential historic breakout driven by strong ETF inflows and robust market demand. This development comes as institutional interest in Bitcoin continues to grow, with significant capital inflows through ETFs. The persistent premium on Coinbase over spot prices further underscores the strong demand from both retail and institutional investors in the U.S. market. Despite geopolitical uncertainties, these inflows have remained resilient, highlighting the market's robust foundation.

Analysts emphasize the importance of maintaining the $74,000 support level, which Bitcoin has successfully defended multiple times during its recent consolidation phase. This level acts as a psychological and technical floor, providing a base for higher lows and sustained upward momentum. The Coinbase premium indicates that investor appetite remains strong, suggesting that demand could accelerate if Bitcoin surpasses the key resistance. However, historical patterns show that failure to break resistance decisively can lead to short-term pullbacks or sideways trading.

Technical charts reveal that Bitcoin faces a decisive challenge at the $108,870 resistance, coinciding with a descending trendline that has capped gains since late 2024. Previous attempts to breach this level near $107,000 were met with rejection, highlighting the significance of this barrier. The Moving Average Convergence Divergence (MACD) indicator has recently flipped bullish, signaling potential upward momentum. However, a divergence in momentum strength and a declining histogram suggest that confirmation is still required before a sustained rally can be confirmed. Traders should monitor volume and price action closely to gauge the strength of any breakout attempt.

If Bitcoin successfully breaks above the $108,870 trendline, it could trigger a rapid ascent toward the psychological $112,000 level, attracting further buying interest. This scenario would likely be supported by continued ETF inflows and positive market sentiment. Conversely, failure to clear this resistance might result in a retracement to lower support zones, including the critical $74,000 level. Such a pullback would test the resilience of the current bullish structure and could offer buying opportunities for long-term investors. Close attention to trading volumes and momentum indicators will be essential in determining the market’s next direction.

Bitcoin’s approach to the $108,870 resistance marks a pivotal moment with significant implications for its near-term trajectory. Strong ETF inflows and sustained investor demand provide a solid foundation for a potential breakout, yet mixed technical signals warrant cautious optimism. Maintaining the $74,000 support level remains crucial for preserving bullish momentum. Market participants should stay alert to volume trends and momentum shifts, as these will be key in confirming whether Bitcoin can capitalize on this critical juncture or face a short-term correction.