Bitcoin Price Rises Above $108,000 on Growing Institutional Demand: Is It a Cat Bounce?
$BTC Bitcoin (BTC) price rose more than 3 percent on Monday, June 16, trading around $108,551 during the mid-North American session. The leading cryptocurrency broke out of a consolidation that had formed over the weekend after a potential capitulation was disrupted following Middle East tensions. As a result of today's rebound, further market optimism has been fueled by traders' greed. Furthermore, Bitcoin and the broader cryptocurrency market are well-positioned to benefit from increased global supply amid anticipated quantitative easing (QE) in the United States. Key Forces Behind Bitcoin's Rebound: Bitcoin price registered bullish sentiment on Monday after Gold price recorded its highest daily close on Sunday. The leading cryptocurrency continues to benefit from macroeconomic headwinds amid ongoing geopolitical tensions in the Middle East and between Russia and Ukraine. Demand for Bitcoin from institutional investors remains high, as evidenced by its gradual decline in total supply on cryptocurrency exchanges. As Coinpedia reported, Strategy Analytics and Metaplanet continued to lead other companies in accumulating more BTC to their respective treasuries. According to market data analysis by Coinshares, Bitcoin led all other digital investment products in net cash inflows last week, with approximately $1.3 billion. Meanwhile, Bitcoin's volatility will continue in the coming days as the Federal Reserve prepares to release its FOMC statement and benchmark interest rate. BTC Price Analysis and Short-Term Forecast: On the daily timeframe, BTC price has been consolidating into a symmetrical triple-digit pattern since hitting an all-time high of around $112,000 in mid-May. The short-term bullish outlook for Bitcoin remains clear, especially after a steady recovery above $107,000 over the past 24 hours. Bullish sentiment is also reinforced by the hourly MACD, which has already crossed the zero line. Additionally, the hourly Relative Strength Index (RSI) has already risen above the 70 percent level, indicating that bulls are in control of the market. However, if BTC prices recover and consistently close below the $101,000-$104,000 support range, renewed bearish sentiment will be confirmed.
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