Bitcoin broke above the $108,000 threshold today, trading around $108,590 — a roughly 3.8% gain — fueled by fading tariff fears, technical momentum, and ongoing institutional demand.
Key Drivers Behind the RallyTrade Policy Relief: U.S.–EU tariff tensions appear to be cooling, easing macroeconomic anxiety and reviving risk-on sentiment in both equities and crypto markets.Technical Breakout: BTC has reclaimed the 10-, 21-, and 50-day EMAs, breaking out of a descending channel — a bullish signal for short-term traders.Institutional Buying: Sustained interest from institutional players supports the rally, with expectations of continued ETF inflows and regulatory clarity boosting sentiment.Technical Overview – Levels to WatchLevelSignificance$106,929–$108,000Support zone after retesting key moving averages$110,000–$112,030Immediate resistance; next breakout target$111,800–$113,000Upper resistance if $110K is breached; bullish upside scenario
Technical indicators like MACD are trending upward, and RSI has crossed key thresholds, supporting the breakout thesis.
Market Outlook & Catalysts AheadCPI/PPI Reports: U.S Consumer Price Index and Producer Price Index data are due this Wednesday and Thursday. Lower inflation could be the next tailwind for BTC.Macro Risk Watch: Even with tariff tensions subsiding, resurgence in geopolitical friction or trade disputes could challenge the rally. Traders should monitor headlines for signs of risk reversal.Futures and Resistance Tests: A minor dip toward $104K–$105K may occur due to futures market rebalancing — though historical dips suggest strong support between $96K and $104K.Analyst PerspectivesTechnical analysts view current levels as bullish. If Bitcoin holds above $108K and clears $110K, momentum may carry BTC to $112K–$115K .Data from Polymarket implies an elevated likelihood of Bitcoin reaching $120K–$130K later this year, though a “healthy correction” to $100K isn’t out of bounds mitrade.com+1dlnews.com+1.Summary
Bitcoin has decisively reclaimed $108K, supported by diminishing trade concerns, clean technicals, and institutional flows.
The next crucial level to beat is $110K, with a sustained hold likely opening the door to $112K+. If key inflation data surprises to the downside and macro risks ease, further upside is plausible.
Watch for healthy pullbacks in the $104K–$106K range as potential accumulation zones.
FAQsWill Bitcoin correct?
Possibly — dips toward $104K–$105K could occur, but are likely to find strong support.What drives further gains?
A clean break and hold above $110K, favorable inflation data, and continued ETF/institutional momentum.What risks remain?
A return to trade tensions, hawkish inflation data, or futures market imbalances could trigger short-term drawdowns.
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