Bitcoin's rise is supported by ETFs and institutional buying
And the macroeconomic tailwinds.#اخبارك_وتحليل #بيتكوين #Crypto #الكريبتو #العملات_الرقمية #Trading #Investing #ProfitTaking #HODL #BitcoinHalving #MarketCycle #CryptoStrategy #PersonalFinance #RiskManagement #CryptoInvesting #AskCrypto #MarketSentiment
T$ETH
T$BNB
On-chain data shows light profit-taking, but long-term holders remain steady.
Futures and options activity indicates bullish bets but increases the risk of a correction.
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Bitcoin experienced a sharp rise this week, surpassing the stability seen last week, reaching a new record level of $111,954. It maintained strength around $102,000 last week, with its rise driven by technical indicators, increasing interest from large investors, positive regulatory news, and an overall improvement in economic conditions.
Institutional demand fuels the rise
The main reason for the recent rise in Bitcoin's price is the large influx of funds into spot Bitcoin exchange-traded funds in the United States. BlackRock's iShares fund (NASDAQ: IBIT) has become the largest institutional Bitcoin fund in the world, holding more than 636,000 Bitcoins. Major financial firms like JPMorgan (NYSE:JPM), Fidelity, and Charles Schwab are including Bitcoin in their clients' portfolios, indicating a shift of Bitcoin from a speculative asset to a strategic reserve tool for institutions.
Moreover, ongoing Bitcoin purchases by Strategic and large purchases by Japan's Meta (NASDAQ:META) are other key factors supporting this rise.
Trump's approach to digital currencies supports the bullish trend
The "Strategic Bitcoin Reserve" decree issued by U.S. President Donald Trump this year, recognizing Bitcoin as a strategic national asset alongside gold, received significant praise in the market. Additionally, the first "Digital Currency Summit" at the White House highlighted strong political support for digital assets.
The bipartisan agreement on stablecoin regulations indicates that the U.S. is working on clearer laws for the digital currency sector. This enhances investor confidence and reduces perceived systemic risks.
Macroeconomic developments elevate risk appetite
Positive global signals have spurred the rise in Bitcoin's price. Investors shifted towards riskier assets after Trump delayed tariffs for 90 days and a trade agreement between the U.S. and the U.K. These events helped Bitcoin surpass the $100,000 mark this month.
With Bitcoin rising, the total market capitalization of cryptocurrencies reached $3.5 trillion. However, it is still below the record of $3.7 trillion set in December 2024, showing that the performance of altcoins has lagged behind Bitcoin.
The series data shows profit-taking levels
CryptoQuant data shows a transfer of 4,435 Bitcoins to Binance after its recent all-time high yesterday, suggesting that short-term traders may be preparing to sell their profits. However, net inflow to cryptocurrency platforms over the past 30 days remains negative, indicating that long-term investors are holding steady.
Other on-chain indicators suggest some selling pressure, but it is not as strong as the profit-taking seen last year, supporting the view that the bullish trend may continue.
Open positions in futures and options
CoinGlass data shows that open positions in the Bitcoin futures market exceeded $80 billion, reaching record levels. This indicates that many investors expect prices to continue rising. However, high leverage could lead to sudden liquidations if a correction occurs, which may exacerbate price declines.
In the options market, Deribit reported over $5 billion in open positions between $110,000 and $130,000. The sell/buy ratio for approximately $2.76 billion in contracts expiring today is above 1, indicating increasing short-term selling pressure.
Technical outlook for Bitcoin
Bitcoin's price briefly stabilized between $102,000 and $106,000 last week during its steady climb. At the beginning of the new week, it tested the resistance level at $106,000, bounced off the support level at $102,000, then surged strongly with strong buying from that area. The upward trend continued throughout the week but slowed near $111,000 by the end of the week. Nevertheless, technical indicators suggest more gains ahead. The next target range on the daily chart is between $114,600 and $125,400, with $114,000 expected to be a key resistance level soon.
Support levels and potential dips
After declining during last week's brief consolidation, the Relative Strength Index (RSI) returned to the upside, reinforcing the bullish trend with technical support. The exponential moving averages (EMAs) on both short and medium terms have remained positive since the trend reversal in April.
There is no strong resistance until the $114,000 level, but profit-taking may trigger a pullback, increasing the chance of testing the trend. In this case, the eight-day exponential moving average, near $108,000, may provide support for short-term dips. If the decline extends to $106,000, a short-term correction may begin, lasting until the mid-support area at $102,000.