Bitcoin (BTC) price had a strong start into the week, rising to multi-month highs following a spike in institutional flows led by MicroStrategy, meanwhile fears of rising inflation continued to draw in more capital.
Bitcoin Market Movers: MicroStrategy and Metaplanet Accumulate BTC
MicroStrategy made headlines by adding $764.9 million worth of BTC to its treasury, right after a class action lawsuit was filed accusing the firm of breaching federal securities laws.
Japanese investment firm Metaplanet also acquired $104.8 million in Bitcoin which brought its total holdings close to the $1 billion mark.
The two transactions by MicroStrategy and Metaplanet likely had the largest impact on the asset’s surge to $107,148.
Investors See Bitcoin as a Hedge Against Rising Inflation
Apparently, investors are hellbent on using Bitcoin as a hedge amid a growing concern of inflation and the potential of hawkish monetary policies.
In their latest earnings call, Walmart stated the possibility of increasing prices across tariff-affected products, which the market interpreted as a sign of potential interest rate hikes.
Bitcoin Price Technical Analysis: Key Indicators
According to our Bitcoin technical analysis, the Bitcoin price chart shows BTC/USD has broken through key Fibonacci resistance levels, reclaiming the 0.5 level at $104,634 and is currently approaching the 0.618 level at $105,226.
If buyers can suppress selling around the current levels, a successful push past the 1.0 Fib extension at $107,141 could position BTC to retest the all-time high and trigger a move towards $110,240 and $115,254.
The recent bounce from the $102,000 support zone forms a classic bullish reversal pattern, which suggests strong buyer interest. However, the Stochastic RSI seems to be pointing at a bearish trend, which suggests Bitcoin is trending in the overbought zone.
At the time of writing, Bitcoin is trading at $104,491. Should the current momentum hold, Bitcoin’s price forecast suggests a bullish outlook to $110,240 soon. The digital asset looks primed for a strong breakout, fueled by growing institutional appetite, increasing ETF flows and the rising concerns of inflation risks.
Frequently Asked Questions (FAQs)
The price prediction for Bitcoin is generally bullish, with more investors seeing the asset as a hedge coupled with heavy ETF flows.
Bitcoin’s major price hurdle lies at $106,000.
Overcoming the price hurdle could pave the way for Bitcoin to reach $110,240.
William S. Berg
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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