Bitcoin is trading near $109K after hitting a new all-time high of $111.9K earlier this week.
Institutional investments and supportive U.S. policies are strengthening long-term bullish sentiment.
Technical charts suggest possible short-term corrections, but the overall trend remains upward.
Bitcoin is trading at around $108,940, reflecting a very slight dip of 0.09% compared to the previous day. Although the decline is minor, it shows that the cryptocurrency market remains sensitive to ongoing developments in global finance and regulation.
Earlier in the day, Bitcoin touched an intraday high of $110,425 and fell to a low of $108,616. Earlier this week, Bitcoin reached a new all-time high of $111,900, which stirred excitement across the crypto community and drew more attention from traders and investors.
At the moment, Bitcoin price movement is facing stiff resistance near the $110,000 level. This level is not just a number but also a major psychological barrier. When prices reach big round numbers, like $100,000 or $110,000, traders often react with caution. Some sell to book profits, while others wait to see if the price will break through.
Technical charts show that Bitcoin is currently overbought. This means that the price has gone up too quickly and may face a short-term correction. The Relative Strength Index (RSI), which is used to measure buying and selling strength, suggests that Bitcoin is in the overbought zone. This can lead to short-term price drops as some investors might start to take profits.
Despite this, Bitcoin is still trading above its 50-day Exponential Moving Average (EMA), which is a positive sign. This line acts as a trend indicator and shows that Bitcoin’s long-term trend remains upward. In addition, there is a short-term upward trend line forming, which might help keep the price supported if there is a mild correction.
One of the biggest reasons for Bitcoin's rise in recent months is institutional support. Large organizations and even governments have started to take Bitcoin more seriously.
A major event that recently boosted confidence is the creation of a Strategic Bitcoin Reserve by the United States under the current administration. With this move, the country now holds nearly 200,000 Bitcoins, making it the largest known government holder of the cryptocurrency. This decision has strengthened Bitcoin’s reputation as a global financial asset.
In addition, the government has adopted a more relaxed approach toward crypto regulations. Several previous rules that restricted banks and financial institutions from dealing in crypto have been removed. For example, a key enforcement team responsible for investigating cryptocurrency crimes was disbanded. These changes show a shift in policy toward accepting and encouraging crypto innovation, which benefits Bitcoin’s long-term prospects.
Corporations have also joined the Bitcoin trend. One notable example is Trump Media and Technology Group, which recently announced a massive investment of $2.5 billion in cryptocurrencies. A large part of this fund is expected to go into Bitcoin. This move aligns with the administration's pro-Bitcoin policies and has attracted significant media attention.
Another interesting trend is emerging in the world of asset management. Firms like Strive Asset Management are now considering unusual strategies to increase their Bitcoin exposure. One such strategy involves buying cash-rich but underperforming biotech companies. The idea is to use the companies' unused funds to buy Bitcoin. This kind of corporate behavior reflects growing interest in Bitcoin as an alternative to holding cash or bonds.
Also Read: Trump’s Strategic Bitcoin Reserve: All You Need to Know
From a technical point of view, Bitcoin continues to show strength. The price is still following an upward trend, and the long-term charts show steady momentum. If Bitcoin manages to stay above its current support levels and breaks through the $110,000 resistance, it could rise further.
Analysts believe that if positive momentum continues, Bitcoin could move towards the $120,000 mark shortly. This prediction is based on strong buying from institutions, positive government policies, and increasing demand from retail investors. However, the road ahead may not be completely smooth. Short-term pullbacks or dips are always possible, especially after a major rally.
Another factor helping Bitcoin’s rise is the current global economic environment. Inflation remains high in many countries, and interest rates are not falling as quickly as expected. In such situations, investors often look for assets that can act as a hedge against inflation. Bitcoin is increasingly seen as one of those options.
In some countries, local currencies are weakening, and capital controls are getting tighter. As a result, people are turning to Bitcoin as a store of value and a way to move money across borders more easily. This trend is especially visible in countries experiencing financial instability.
Also Read: Bitcoin Price Flirts with $110K Mark: $200K Target in Sight
Bitcoin’s short-term path depends on whether it can hold its gains and push above the key $110,000 level. If buyers stay active and the global sentiment remains positive, Bitcoin could head toward $115,000 to $120,000. The biggest drivers will be new institutional investments, fresh policy changes, and technical chart breakouts.
However, there is also a possibility of profit-taking. Whenever Bitcoin reaches new highs, some investors choose to sell and lock in profits. This could lead to short-term dips, but such corrections are often healthy and can set the stage for further growth.
Market participants [a1] are also closely watching upcoming economic data, including U.S. inflation numbers, central bank meetings, and geopolitical developments. Any sudden changes in interest rates, taxation, or crypto regulation could influence Bitcoin prices either positively or negatively.