The Bitcoin market continues its upward trajectory, driven by positive fundamental factors and strong institutional buying pressure.
After bouncing from key support levels in recent weeks, Bitcoin is now approaching a critical resistance zone that could determine its next major move.
In this article, we will cover the most important fundamental drivers, the current technical structure on the 4-hour timeframe, and key support and resistance levels for Bitcoin.
Fundamental Factors Supporting Bitcoin's Recent Rally
1. Heavy Institutional Buying
In recent weeks, companies like MicroStrategy and Metaplanet have made large Bitcoin purchases.
This signals growing institutional confidence in Bitcoin’s long-term potential and adds significant buying pressure to the market.
2. Market Expectations for Fed Rate Cuts
The latest US economic data, including the PCE inflation index and job market statistics, indicate a cooling inflation trend.
This has raised market expectations for a potential Federal Reserve interest rate cut in the coming months.
As a result, risk assets like Bitcoin are becoming increasingly attractive to investors.
3. Positive Inflows into Spot Bitcoin ETFs
There’s been a continued positive inflow of capital into US-listed spot Bitcoin ETFs.
This is a clear sign of growing institutional and retail demand, which is fueling upward price momentum.
4. Weakening US Dollar Index (DXY)
The US Dollar Index (DXY) has shown relative weakness over the past few weeks.
This has also supported Bitcoin’s bullish trend, as a weaker dollar often benefits alternative stores of value like Bitcoin.
Technical Analysis of Bitcoin | 4-Hour Timeframe Overview
On the 4-hour timeframe, Bitcoin’s market structure remains bullish.
After a strong bounce from the key support zone between $97,000 and $98,000, Bitcoin has entered a new upward phase.
The price is now testing a major resistance area between $108,000 and $110,000.
Key Bitcoin Support and Resistance Levels
- Major Resistance $108,000 – $110,000
- Minor Resistance $107,800
- First Support $105,500 – $106,000
- Second Support $102,400
- Strong Demand Zone $97,500 – $98,500
Possible Price Scenarios for Bitcoin (Short-Term)
Bullish Scenario (Breakout):
If Bitcoin successfully breaks and holds above $110,000, the next upside targets could be $112,000, followed by $115,000.
Bearish Scenario (Rejection):
If the price fails to break the resistance and selling pressure increases, a pullback towards the $106,000 support or even $102,400 could occur.
Range-Bound Scenario:
There’s also a possibility that Bitcoin remains in a sideways range between $106,000 and $110,000 for some time before making a decisive move.
Final Thoughts | Caution at a Critical Resistance Zone
Bitcoin is currently trading in a critical decision-making zone.
A clear breakout above the $110,000 resistance could open the door for a new bullish leg.
However, failure to break this level might lead to a short-term correction.
From a fundamental perspective, market conditions are still favoring the bulls, but traders should closely monitor Bitcoin’s price action over the next few days.
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