Bitcoin Surges 11% to $110,000 on Institutional Demand and Technical Breakout

Bitcoin (BTC) has recently surged past the $110,000 mark, following a critical breakout above $108,900. This movement has positioned the cryptocurrency for a potential new all-time high of $130,000. Analyst Michaël van de Poppe predicted on June 10 that the current phase is likely a short consolidation period, a common pattern before increased upward momentum. Van de Poppe suggests that the ideal buying range for BTC, as it prepares for what could be another historic run, sits around $107,000 to $108,000. Bitcoin’s 14-day relative strength index (RSI) currently sits at 6771, which is bullish but not yet overheated. If the RSI retests 75 by the end of the month, another analyst PlanB suggests, the June closing price for BTC would be approximately $130,000, agreeing with van de Poppe’s predictions.

The rally can be attributed to several factors, most notably a sharp technical breakout. Specifically, BTC reclaimed the 23.6% Fibonacci retracement level at $109,248 after bouncing off key support near $100,436. Institutional demand remains strong, with spot exchange-traded funds (ETFs) and corporate treasuries continuing to absorb supply. For example, Strategy (formerly MicroStrategy) has bought over 1000 BTC this week, worth approximately $110.2 million in total. Many investors are optimistic about the upcoming Federal Open Market Committee (FOMC) decision on Federal Funds Rate (FED) cuts, pending June 18. While prolonged high rates might weigh on risk assets, BTC’s correlation with global liquidity could provide some much-needed counterbalance.

With strong institutional inflows, bullish investor sentiment, and solid technical signals, a significant move might very well be on the horizon. Whether that will include the $130,000 target, however, remains to be seen.

Ask Aime: Is Bitcoin ready to break through $130,000?