Bitcoin Surges 7.4% to New All-Time High of $112,150

Bitcoin has confirmed a breakout from its multi-week downtrend, signaling a shift in market sentiment and the potential end of the bearish phase that began in late May. The cryptocurrency successfully retested the $104,400 level, validating the breakout and indicating renewed bullish momentum. This development has been further supported by institutional demand, with Bitcoin surging to a new all-time high of $112,150 late on Wednesday. The price surge liquidated nearly $200 million in short positions, underscoring the strength of the bullish move.

The breakout has been accompanied by a series of positive indicators. Notably, mid-size wallets have been accumulating Bitcoin, suggesting that investors are confident in the cryptocurrency's future prospects. Additionally, the broader macro backdrop remains favorable, with inflation under control and economic conditions supportive of risk assets. This has opened the door for further upside continuation, as minor downtrend resistance has been broken.

Analysts have pointed to several key factors contributing to Bitcoin's breakout. The confirmation of a daily higher-high signals the end of the downtrend, positioning Bitcoin for further gains. Moreover, the successful retest of the $104,400 level has provided a strong foundation for the breakout, with the cryptocurrency now challenging long-standing resistance levels.

The breakout has also been supported by institutional demand, with BlackRock's spot Bitcoin ETF (IBIT) experiencing a significant trading rebound. This has snapped a four-week downtrend in volume, indicating that institutional investors are increasingly bullish on Bitcoin. The ETF's rebound has been seen as a positive sign for the broader cryptocurrency market, as it suggests that institutional investors are continuing to accumulate Bitcoin despite the recent volatility.

Looking ahead, the breakout has opened the door for further upside continuation. The broader macro backdrop remains favorable, with inflation under control and economic conditions supportive of risk assets. This has led analysts to predict that Bitcoin could continue to rally in the coming weeks, as investors seek to capitalize on the cryptocurrency's bullish momentum. However, it is important to note that the cryptocurrency market remains volatile, and investors should conduct their own research before making any investment decisions.