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Bitcoin forms a bullish engulfing pattern with a 78% success rate, signaling a potential breakout.
$501M in ETF inflows and growing political backing from U.S. policymakers are reinforcing institutional confidence.
Altcoin season could ignite once Bitcoin stabilizes above $110K, bringing broader crypto market gains.
Bitcoin (BTC) appears to be entering a new phase of its bullish cycle, buoyed by an alignment of technical, fundamental, and geopolitical factors. After a steady climb to the $108,000 range, analysts and investors alike are eyeing new highs, potentially setting the stage for a significant upward breakout.
As the broader market watches key chart patterns and macroeconomic indicators, Bitcoin’s bullish bias grows increasingly.
Among the most notable developments is the formation of a bullish engulfing pattern on the daily chart of Bitcoin. Historically, this pattern has signaled local tops with remarkable accuracy; 15 out of 19 similar patterns since January 2021 have resulted in significant upside, yielding a 78% success rate.
This isn’t a casual signal. The bullish engulfing formation must meet rigorous criteria to be valid: the engulfing candle must completely absorb at least two preceding red candles, appear after a corrective phase, and trigger a structure break in subsequent sessions.
Adding further weight, recent geopolitical stability, particularly the ceasefire agreement between Israel and Iran, helped stabilize the market.
Following a brief dip below $100,000, Bitcoin swiftly rebounded to the $108,000 mark, reaffirming the strength of bullish sentiment in the current cycle.
According to data from Swissblock, Bitcoin’s current liquidity levels are strikingly similar to those observed in December 2022, a period that preceded a price increase of nearly 100% in just three months. The most important indicator is that Bitcoin has absorbed over $544 billion in capital since bottoming at $16,800 in November 2022.
As a result, realized market capitalization —a measure of the total capital invested based on each coin’s acquisition price —has surged to $944 billion, its highest level in history. This massive influx of capital underscores Bitcoin’s growing role as a macroeconomic asset and store of value.
The rise of institutional interest continues to drive this trend. U.S.-based Bitcoin ETFs recorded $501.27 million in net inflows on June 27 alone, reflecting the persistent appetite for Bitcoin as part of diversified portfolios.
With the Federal Reserve hinting at potential interest rate cuts if inflation cools, risk-on assets, such as Bitcoin, stand to benefit significantly in the coming months.
Bitcoin is also entering the political spotlight. U.S. policymakers are increasingly voicing support for pro-crypto policies, including clearer regulation and the adoption of digital assets. This trend could further legitimize Bitcoin as both a store of value and a sovereign financial alternative.
Global interest is also growing, with some nations discussing potential Bitcoin reserve holdings as a hedge against risks associated with fiat currency.
As of now, Bitcoin is trading between $107,654, hovering near the top of its established short-term range. Holding above $105,000 for two consecutive days would likely confirm a bullish structural shift and increase the chances of further gains.
Immediate resistance lies around $110,000. A clean break above this level could see the price climb toward $114,000 - $120,000, while extended forecasts suggest potential highs at $140,000.
Some long-term bullish scenarios even point to the $1 million mark, though such targets remain speculative.
Support levels to monitor include $106,600, which aligns with short-term trendlines and volume clusters.
A failure to hold above this could see Bitcoin retest $105,000 or $103,000, particularly if macro data disappoints.
Also Read: Will Bitcoin Rise or Fall? These 3 Levels Hold the Clues
Another catalyst that could influence price movement is the recent expiration of $20 billion in Bitcoin options on June 27. With $11.2 billion in call options versus $8.8 billion in puts, bulls have a theoretical edge, worth around $2.1 billion as long as Bitcoin remains above $106,000.
This positioning adds short-term strategic pressure to maintain upward momentum and increases the likelihood of continued bullish activity.
Despite Bitcoin’s dominant rally, the altcoin season has yet to ignite fully. Bitcoin dominance remains elevated, indicating that the majority of new capital continues to flow into BTC rather than smaller-cap assets.
Historically, a significant surge in Bitcoin is often followed by a rapid rotation into altcoins, which could set the stage for broader market gains in the third quarter.
Analysts believe that once Bitcoin stabilizes near or above $110,000, attention will likely shift toward leading altcoins, particularly those with strong fundamentals or those aligned with trending sectors, such as artificial intelligence, real-world assets (RWA), and decentralized finance (DeFi).
This impending rotation could further reinforce Bitcoin’s current gains, as growing market confidence spills over into the wider crypto landscape.
Also Read: Bitcoin Price Nears $107,800: Can Bulls Push BTC Past $112,000?
Bitcoin’s current trajectory is backed by more than just sentiment; it’s supported by technical precision, macroeconomic trends, and sustained institutional inflows. The bullish engulfing pattern, favorable liquidity backdrop, and ETF momentum present a strong case for a continued rally.
While short-term corrections remain possible, particularly around major resistance levels, the path to new highs is looking clearer than ever. Investors should closely monitor the $106,600-$110,000 zone as the next decisive moves unfold.
With technicals and fundamentals aligned, Bitcoin may soon lead the broader market into a new era of gains.
1. What is the current price of Bitcoin?
Bitcoin is currently trading at $107,654.
2. What technical pattern is supporting Bitcoin’s bullish outlook?
A bullish engulfing pattern that historically precedes new highs in 78% of cases.
3. How much institutional capital has entered Bitcoin recently?
Bitcoin ETFs saw over $501 million in net inflows on June 27 alone.
4. What’s the significance of political support for Bitcoin?
U.S. political leaders are increasingly supporting crypto-friendly regulation, adding legitimacy.
5. When might altcoins begin to outperform?
Altcoin season could start once Bitcoin consolidates above $110,000 and investor rotation begins.
