Bitcoin Surges 4% to $104,800 Amid Volatility and Institutional Support

Bitcoin has recently experienced significant volatility, with the cryptocurrency surging past $104,000 before facing a critical test. On June 5, 2025, Bitcoin started trading just above $104,800 after a period of sideways movement and cautious sentiment. This surge came after a brief dip below $101,000 earlier in the week, marking the first time it had fallen below this level in nearly a month. The cryptocurrency's price has been fluctuating within a narrow range, trading between $104,000 and $107,000 over the past two weeks. This volatility has been driven by a combination of factors, including forced liquidations and market sentiment.

The selloff began late on June 5 when Bitcoin broke below the $104,000 support level, setting off a wave of forced liquidations. This event highlighted the sensitivity of the market to sudden price movements and the potential for further declines. Despite this, Bitcoin has shown resilience, rebounding to nearly $104,000. However, analysts caution that this may be a temporary bounce before further decline, with immediate support levels at $100,000.

The current price of Bitcoin reflects a healthy consolidation phase following its dramatic rally earlier in the year. The cryptocurrency has maintained its position above the critical $100,000 psychological support level for over 20 consecutive days, demonstrating strong market confidence and institutional backing. Technical indicators suggest that Bitcoin could target $120,000 in the near term if key resistance levels are broken. The cryptocurrency maintains a bullish configuration above its 50-day EMA and 200-day EMA, with the RSI indicating neutral momentum conditions.

Key support levels for Bitcoin include $100,000 and $98,000, while resistance sits at $108,000 and $112,000. The Fear & Greed Index at 69 reflects optimistic market sentiment, though traders should monitor for potential volatility around these critical levels. Institutional adoption continues to drive Bitcoin's price predictions, with analysts forecasting targets ranging from $150,000 to $250,000 by year-end. This bullish outlook is supported by unprecedented institutional adoption, with corporate treasuries and Bitcoin ETFs providing fundamental support for higher price levels.

Despite these bullish fundamentals, several factors could influence Bitcoin's trajectory. Corporate Bitcoin treasuries could become forced sellers if prices drop more than 22% below average purchase prices, potentially triggering downward pressure near $90,000 levels. Political tensions and macroeconomic factors, including Federal Reserve policy decisions and international trade developments, continue to influence institutional investment flows. As Bitcoin faces these challenges, its resilience and ability to maintain support levels will be crucial in determining its future price movements.