Bitcoin Surges 48% Since April Low, Eyes $112,000 Target

Bitcoin's price is poised for a significant surge in the near future, driven by a confluence of technical and fundamental factors. Currently trading at $108,955, just below its all-time high of $111,900, Bitcoin has formed several bullish patterns that suggest a strong upward movement. The daily chart indicates that Bitcoin bottomed at $74,558 in April and has since rebounded to its current high. This movement has created a highly bullish cup-and-handle pattern, characterized by a horizontal resistance level and a rounded bottom, with a handle section forming a descending channel. This pattern is further supported by a bullish flag pattern, which typically results in additional gains over time.

Technical indicators such as the 50-day and 100-day Exponential Moving Averages (EMA) show that bulls are in control, as Bitcoin has moved above these levels. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are also on the rise, indicating a strong bullish momentum. The initial target level for this breakout is set at $112,000, with the potential to reach over $145,000 if the price breaks above this level. This target is derived by measuring the cup’s depth, which is approximately 30%, and then applying the same distance from the cup’s upper side.

The long-term chart also suggests further gains for Bitcoin. The all-time chart shows two rounded bottoms formed in the past few years, with the first between December 2017 and April 2021, and the second between November 2021 and January 2025. Bitcoin is currently trading slightly below the ascending trendline that connects the highest swings since 2017. A move above this eight-year trendline could indicate further gains, potentially reaching $200,000 and beyond.

In addition to technical factors, Bitcoin's strong fundamentals also support a price surge. The price movement of Bitcoin, like all assets, is driven by demand and supply. While the demand trajectory is slowing, more investors are accumulating the coin. This is evident in the ETF space, where inflows have surged in the past few months. Bitcoin ETF inflows have increased for the last four consecutive months and are approaching the $50 billion milestone. The iShares Bitcoin ETF is nearing the $80 billion asset mark, while Fidelity’s FBTC ETF holds over $22 billion in assets. Grayscale’s GBTC and Ark Invest’s ARKB have over $20 billion and $5.3 billion in assets, respectively.

The rising Bitcoin ETF inflows are occurring at a time when the supply continues to decrease. Mining activity has slowed due to the increased difficulty rate following last year’s halving event. Additionally, the supply of Bitcoin on exchanges has continued to fall in the past few months. Factors such as Donald Trump’s Big Beautiful Bill, the soaring US public debt, and upcoming interest rate cuts are likely to boost risky assets, including Bitcoin and stocks, further driving its price higher.