Bitcoin price rises above $108,000 on increasing institutional demand: Is it a cat bounce?
The price of Bitcoin (BTC) rose more than 3 percent on Monday, June 16, trading at around $108,551 during the mid-North America session. The leading currency broke out from a consolidation that formed over the weekend after a potential capitulation disruption following Middle East tensions. As a result of today’s rebound, optimism for further market rallies increased among traders' greed. Furthermore, Bitcoin and the broader cryptocurrency market are well-positioned to benefit from the rising global supply amidst expected quantitative easing (QE) in the United States. Key forces behind Bitcoin's recovery recorded a bullish sentiment for Bitcoin on Monday after Gold Price recorded the highest daily close on Sunday. The leading currency continued to benefit from macroeconomic winds amid ongoing geopolitical tensions in the Middle East and between Russia and Ukraine. The demand for Bitcoin from institutional investors remains high, as evidenced by its gradual decline in total supply on cryptocurrency exchanges. As reported by Coinpedia, Strategy and Metaplanet continued to lead other companies in accumulating more BTCs for each of their treasuries. According to market data analysis by Coinshares, Bitcoin led all other digital investment products in net cash inflow last week, amounting to approximately $1.3 billion. Meanwhile, Bitcoin's volatility will continue in the coming days as the Federal Reserve prepares to release the FOMC statement and the benchmark interest rate. BTC price analysis and short-term outlook in the daily timeframe, the price of BTC has been consolidated in a symmetrical triangle pattern since it reached its all-time high of around $112,000 in mid-May. The short-term bullish outlook for Bitcoin is clear, especially after a steady rebound above $107,000 over the past 24 hours. The bullish sentiment is also reinforced by the hourly MACD line, 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 are reclaimed and consistently close below the support range between $101,000 and $104,000, renewed bearish sentiment will be confirmed.
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