Bitcoin is hanging around its all-time high of $112,000, but it’s not quite breaking through. Altcoins are also seeing some dips. Last week was pretty volatile, and Bitcoin didn’t quite close above the key resistance level, leaving some doubt about what’s next. But analysts are still hopeful because the price is above major support levels. A strong close this week could change everything.
Coinbase Premium Shows Strong Institutional Interest
A key indicator, the Coinbase premium (meaning Bitcoin trades higher on Coinbase than other exchanges), has been consistently high for the past two weeks. This is a good sign, usually pointing to strong buying pressure from US investors. This premium dipped a bit due to some Middle East geopolitical issues, but it’s bounced back, showing increased market confidence. The weekend’s price action will be crucial in determining if Bitcoin can break through $112,000 and keep going up, or if it’ll settle into a longer period of consolidation. Macroeconomic factors are looking better, and on-chain data is improving, so the weekend could be a big turning point.
Bitcoin’s Tight Trading Range: Breakout Imminent?
Bitcoin’s been stuck in a range between $103,000 and $110,000 for a few days. A break above or below this range will likely trigger a significant price movement. The overall economic climate is looking better – less geopolitical uncertainty and clearer US fiscal policy. This sets the stage for a potential Bitcoin bull run in the coming months.
However, there are still some risks. US Treasury yields are rising, and inflation isn’t under control yet. These factors could add volatility to the market. The consistent Coinbase premium, along with strong ETF inflows (meaning institutional investors are buying), suggests ongoing demand, especially from US buyers. But if Bitcoin stalls while ETF inflows remain high, it could signal a peak, like we’ve seen before. As long as the price stays above $103,000 and keeps pace with the ETF inflows, the bulls are in charge. Breaking above $110,000 could lead to new all-time highs, while falling below $103,000 could cause a sharp correction.
Bitcoin’s Daily Chart: The $112,000 Hurdle
Bitcoin is trading between $103,600 and $109,300, just below its all-time high. It’s staying above its 50-day moving average, which is a positive sign. The $109,300 resistance level has been tested several times, but without a strong breakout. Trading volume has been low during these tests, suggesting buyers are waiting for a clearer signal before committing. On the downside, $103,600 is a key support level. The 100-day and 200-day moving averages are still trending upwards, which supports the long-term bullish outlook. A strong close above $109,300 could lead to a rapid price increase, potentially reaching $120,000 or more. But if it fails to hold current levels, we could see a retest of $100,000 or lower. This range is crucial for determining the market’s next move.