Earlier this week, Bitcoin exploded to historic highs. It touched a key resistance area around $104,000, its first foray to this area since February. This surge pushed Bitcoin’s market cap over $2 trillion, helping drive a total crypto market cap of $3.25 trillion. While the past price action has investors feeling optimistic again, there’s a long way to go and potentially more good news ahead.
A clear break above the $104,000 resistance might call for an extension in the bullish trend. This bullish trend could propel Bitcoin to the $110,000 level. The fact that Bitcoin has stayed above the 100-week Weighted Moving Average in general shows that bullish control over the market is here to stay. Having bottomed at $79,510 in April, Bitcoin has since recovered by close to 40%, bringing the overall altcoin market up with it.
Having gained for five weeks in a row, Bitcoin is now looking very much like it will head back to test its all-time high of $109,400. A range of technical indicators support this upbeat picture. The Relative Strength Index (RSI) and the MACD are both crossing up, reflecting that momentum is reversing in favor of Bitcoin.
Bitcoin’s price rally ties directly to the tremendous success of spot Bitcoin ETFs. No wonder these ETFs have taken the world by storm, pulling over $40 billion in inflows since the start of January 2024. Just this month, spot Bitcoin ETFs have brought in more than $1.7 billion. Driving this surge is an apparent rush of interest from institutional as well as retail investors into cryptocurrency. The current market mechanics are a cocktail of experienced whales, miners, and new retail investors.
Bitcoin’s performance over the last several months is a watershed moment, one that speaks to its enormous potential for further growth. Cryptocurrency, as a whole, has made an impressive emergence – almost doubling its overall market capitalization and investor participation thereof just within the past year.
