Bitcoin Surges 3% to $109,000 on Institutional Interest

Bitcoin's price has surged to $109,000, indicating that bulls are in control of the market. This price level is significant as it suggests that the cryptocurrency is poised for further gains. The bulls need to maintain the price above $109,000 to enhance the prospects of a breakout to a new all-time high above $111,980. The recent surge in price has been driven by encouraging news around institutional interest and optimism in the market.

The momentum in the market could push Bitcoin past $109,000 into a new price discovery phase. Analysts have suggested that if Bitcoin follows the lead of traditional markets, such as the S&P 500, it could hit new all-time highs this month. The strong single-day impulse from $105,000 to above $110,000 highlights the bullish sentiment in the market. The price is currently pausing at resistance near $110,000, and a breakout above this level could signal further gains.

Bitcoin's rally above $109,000 has invalidated a bearish pattern, setting the stage for bulls to make a run at a new all-time high. The cryptocurrency bounced off the $105,000 support and closed above the downtrend line, which is a positive sign. Both moving averages are sloping up, and the relative strength index (RSI) is in the positive territory, indicating an advantage to buyers. The BTC/USDT pair could reach the neckline of the inverse head-and-shoulders pattern, where the bears are expected to step in. If the bulls do not give up much ground from the neckline, it increases the likelihood of a break above it. The pair may then rally toward the pattern target of $150,000.

Sellers will have to swiftly pull the price below the moving averages to prevent the upside. The pair may then slump to $105,000 and subsequently to $100,000. The price broke above the downtrend line and successfully retested the breakout level, signaling that the bulls are trying to flip the level into support. The upsloping moving averages and the RSI in the positive zone signal that bulls have the edge. However, the bears are unlikely to give up easily. They will try to fiercely defend the zone between $110,500 and $111,980. If the price turns down from the overhead zone but finds support at the moving averages, it signals a positive sentiment. That increases the likelihood of a break above $111,980.

Sellers will be back in the driver’s seat if the price turns down and plummets below the moving averages. The term structure for Bitcoin has shown a reasonably strong steepening, with the 7-day tenor falling back below 40%. This indicates that there is a bullish sentiment in the market, and the price could continue to rise. The price holding above daily EMAs and intraday bullish RSI cross indicate momentum, and a strong breakout above the $1.65 zone with volume confirmation could signal further gains. The recent surge in price has been driven by encouraging news around institutional interest and optimism in the market. The pattern has now officially broken to the upside, with the price surging to $109,000. This is a strong bullish signal, and if the bulls can maintain the price above this level, it could signal further gains in the market.