Bitcoin on the rise: over $110,000 – where is it headed?

Bitcoin on the rise: over $110,000 – where is it headed?

Bitcoin is currently facing a crucial phase and is showing signs of stability above the critical level of $107,000. However, despite high institutional demand, the price remains in a quandary. According to a report by Exchange Express Bitcoin ETFs have seen record inflows, with $501 million in net inflows just last Friday. This marks the 14th consecutive day of positive net inflows into spot ETFs.

The current market situation is supported by the management of over $133 billion in Bitcoin by institutional investors such as Fidelity and BlackRock. A significant portion of Bitcoin market capitalization is now in regulated investment vehicles, increasing confidence in the market. However, the resistance area between $108,000 and $110,000 is proving stubborn. Historically, this area has often led to sell-offs, further adding to the uncertainty.

Technical analysis and market forecasts

Bitcoin is currently trading around $110,000 and is consolidating after rising above $105,000, as Coinspeaker notes. Technical analysis suggests a short-term uptrend, with indicators such as MACD and moving averages (SMA) being bullish alongside the RSI. While the RSI is around 72, indicating overbought conditions, market sentiment is still bullish. The daily high price was recently around $110,650, while the price is currently consolidating between $109,800 and $110,000.

Immediate support for Bitcoin is seen at around $108,000, while stronger support is seen at $106,750. Resistance is located at $110,500, $111,900, and $112,000. If Bitcoin closes above $112,500, it could trigger further price movements towards $115,000 and $120,000.

Institutional demand and political developments

Institutional demand remains strong, which is also reflected in the record-breaking 14.46 million BTC in the hands of long-term investors, a sign of confidence in the cryptocurrency. This positive market sentiment is further fueled by political support such as that of US Senator Cynthia Lummis for reforms in Bitcoin taxation. Also a significant development is that Texas is integrating Bitcoin into its state reserves. Tether, on the other hand, is investing heavily in mining infrastructure to strengthen its own market position.

In addition, Bitcoin is showing increasing correlation with traditional markets such as the S&P 500. According to surveys, inflows into Bitcoin ETFs could reach over $55 billion in 2025. The user base is also growing, with wallet addresses holding more than one Bitcoin increasing by 15% within a day. However, markets remain tense and breaking $104,000 could trigger a decline to around $98,400.