Bitcoin Surges 5% to $111,988 on Institutional Demand

Bitcoin has surged to an unprecedented high, reaching $111,988, marking a significant milestone for the cryptocurrency. This surge comes after a period of consolidation and accumulation, with the digital asset breaking through key resistance levels. The price of Bitcoin started a fresh increase above the $110,500 zone, extending gains above the $116,000 level. This upward momentum has been driven by growing institutional demand and a bullish market sentiment, with Bitcoin now up over 5% and showing positive signs above the $110,000 level.

The cryptocurrency's price has been on a steady climb, breaking above the $108,500 resistance and climbing past subsequent levels. This breakout has been supported by a bullish consolidation pattern, with key resistance levels identified at $113,000, $118,000, and $121,000. The price is currently near $112,000, with support near the $110,000 mark. This resistance was previously tested and held, indicating a strong bullish trend.

The surge in Bitcoin's price has been fueled by a combination of factors, including growing institutional demand and a bullish market sentiment. The cryptocurrency has maintained momentum to the upside, with a trend of pullback in the smaller time frames. This pullback has been followed by a strong bounce, indicating that the market lows are well and truly in, with much more upside to come.

The current price action suggests that Bitcoin is in the midst of another Bull Flag pattern, with a clear view of the chart showing a textbook "smaller right-shoulder" and holding steadfast when testing the strong support found at $98,000. This pattern, along with the Inverse Head and Shoulders pattern, provides excellent confluence and further signals the notion that the market lows are well and truly in, with much more upside to come.

The strong bounce off this level happened exactly in the midst of a period of market uncertainty, with the opportunity for those still on the sidelines currently waiting to allocate further capital still clear and present. However, this opportunity may not remain lucrative for much longer, as the cascade of bullish price action and strong fundamentals narratives are ramping up to create the beginnings of a euphoric cacophony.

The rest of the crypto market remains undervalued for the most part, with all the top 10 majors appearing to be in their own versions of an accumulation structure. This means that even for the major alts, the opportunity to buy low before moving higher also remains clear and present, just like Bitcoin. Ethereum, as the number two asset, is still undervalued, yet holding its accumulation zone of support. This is slowly but surely stacking the odds in its favor that there’s a lot more upside than downside risk from here on out.