Bitcoin (BTC-USD) surged to $108,220** in recent trading, edging closer to the pivotal **$110,000 resistance level. The upward momentum is fueled by robust ETF inflows and dwindling exchange reserves, though traders remain watchful as institutional activity intensifies below key resistance zones.
Key Market Drivers
ETF Inflows and Supply Crunch
- U.S. spot Bitcoin ETFs recorded $294 million in net inflows this week, spearheaded by BlackRock’s IBIT and Fidelity’s FBTC.
- Exchange reserves hit a 5-year low, per Glassnode, amplifying buy-side pressure.
Short Squeeze Potential
- Hyblock Capital data reveals a liquidity cluster at $109,500–$111,200, where overleveraged shorts cluster.
- A breakout above $110K** could trigger a cascade toward **$115K–$120K as stop-losses activate.
Technical Analysis
- 4H Chart: Ascending triangle with support at $107,200; RSI at 65 signals bullish momentum.
- Daily Bollinger Bands are at their tightest since late May, hinting at imminent volatility expansion.
Critical levels:
- Upside: $110,500 (breakout confirmation) → $118,000 (initial target).
- Downside: $106,800–$104,300 (strong bid zone).
Institutional Sentiment
- Coinbase Prime and Bitwise wallets show rising long-only interest.
Derivatives metrics:
- Funding rates: Mildly positive (+0.012%).
- Open Interest: Up 8% in 48 hours, suggesting accumulation.
FAQs
1. What’s driving Bitcoin’s current rally?
A: ETF inflows, shrinking exchange supply, and institutional accumulation are key catalysts.
2. Is a short squeeze likely?
A: Yes—if BTC breaches $110K, forced short covering could accelerate gains.
3. Where is Bitcoin’s next major resistance?
A: $118,000** (post-breakout), with **$130,000 as a secondary target.
4. What’s the downside risk?
A: A drop below $104K could weaken the structure unless ETF flows rebound.
👉 Bitcoin ETF strategies for 2025
Final Outlook
Rating: BUY on breakout above $110,500**, targeting **$118K–$130K**. Downside protected by spot demand near **$106,800.
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