Investor caution grows as 97% of holders are in profit and futures markets hit record open positions, raising pullback risks.
Despite short-term risks, strong buying interest and institutional demand keep the overall uptrend intact.
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started rising again in April, finding support just below $75,000. Since then, it has jumped by 40% and is now close to $106,000. The uptrend picked up speed after the cryptocurrency broke past the $87,000 resistance level. Both technical charts and market factors supported this move. For now, it is trading between $102,000 and $104,000, and investors are watching closely for signs of a possible pullback.
Bitcoin Faces Key Test at $106K
Bitcoin quickly climbed to the $100,000 range after finding support at $94,200 in May. But over the past week, its price has stayed mostly flat, trading between $102,700 and $104,800. This zone also matches the resistance area that stretches up to the $109,000 peak seen in January. Since the earlier downtrend began from this point, Bitcoin is once again facing difficulty moving past it, leading some investors to expect a correction.
The $106,000 level could be a turning point. If Bitcoin fails to break above it, prices might fall back to $99,400 or even $94,200. Still, market buying interest remains strong, and recent selling has been absorbed well. During this phase, $102,700 could act as a support level. If Bitcoin holds above it, it may attempt another push to break through resistance.
Trading Volumes and Risks Climb
Blockchain data shows that 97% of Bitcoin investors are currently in profit. In the past, such high profit levels often led to profit-taking. At the same time, open positions in crypto futures markets have hit record highs.
There is also growing demand for put options, suggesting that investors are cautious and looking to protect their gains. In this overheated market, sudden price swings are likely as conditions tighten.
Fed Outlook After Inflation
One of the key reasons behind Bitcoin’s recent rise is growing speculation about changes in Fed policy. US came in lower than expected, increasing the chances of an cut. This, along with improving trade talks between the US and China, has boosted demand for riskier assets like crypto. Falling US bond yields and Bitcoin’s close link to stock market trends have also played a role in lifting investor confidence.
Institutional Focus Shifts to Spot ETFs
Another major factor driving Bitcoin’s price is the growing interest of institutional investors. BlackRock’s iShares Bitcoin Trust ETF (NASDAQ:) continues to lead this trend, with total net inflows reaching $45.4 billion. While inflows slowed to $115 million yesterday compared to $319 million the day before, institutional buying has remained strong throughout the week.
A key development was Abu Dhabi-based Mubadala’s $408.5 million investment in the IBIT ETF. With $302 billion in assets under management, Mubadala’s move signals growing acceptance of Bitcoin as a legitimate asset. It shows that Bitcoin is no longer seen just as a speculative play but also as a store of value that fits into long-term investment strategies.
JPMorgan analysts have also turned optimistic on Bitcoin. They believe it could outperform gold in the coming months. Their outlook is based on rising institutional demand, a maturing derivatives market, and faster progress in regulatory integration.
If Bitcoin can break above $106,000 with strong trading volume and continued positive sentiment, it could move toward new highs in the $114,000 to $125,000 range, based on Fibonacci levels.
In summary, while there is a clear risk of a short-term correction, the broader uptrend in Bitcoin remains strong.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation, or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
