Bitcoin Surges 20% to $108,840 Amid Bullish Momentum

Bitcoin has shown strong momentum, trading above $108,000, which has sparked excitement among traders. The cryptocurrency is attempting a breakout from its broader consolidation range, but analysts caution that past attempts have failed to hold. According to analyst Daan Crypto Trades, traders should wait for a confirmed weekly close above this zone to avoid another false breakout. Despite this caution, Bitcoin is holding firm near $108,840 with low volatility, suggesting the market is preparing for a major move.

Technical charts indicate that Bitcoin has built strong support at the $108,836 level, which was once a resistance zone but is now acting as a demand pocket. The mid-range level near $99,658 also offers key support. Any dip below this mark could lead to short-term selling pressure. Currently, smart money appears to be accumulating during this low-volatility phase.

From a technical perspective, Bitcoin has rebounded 20% from the range low of $90,858, showing significant bullish momentum. It continues to trade above all major moving averages, adding confidence to its uptrend. Institutional interest remains strong, as reflected in sustained inflows and a healthy perpetual inverse swap market. Balanced funding rates signal that there’s no excessive leverage in the system right now.

The three-day chart structure reveals clear higher highs and higher lows, confirming the bullish structure. Momentum traders are entering long positions around $108,000, and Bitcoin could soon challenge the key resistance between $110,000 and $112,000. However, traders must remain cautious as psychological resistance at $110,000 could trigger profit-taking. External factors like macro news could also spark volatility, making risk management crucial at this stage. Proper position sizing is key.

Bitcoin’s steady exchange outflows show that investors prefer holding over trading. This trend contributes to a supply squeeze that may fuel further gains. Traders are eyeing the $110,000 resistance while keeping risk in check, with exchange outflows pointing to long-term holding behavior. The overall sentiment remains bullish, with the potential for Bitcoin to reach new highs in the near future.