Bitcoin Heading Towards New Highs : Crucial Levels to Break
Recent market developments show an increase in the Bitcoin price, with a bullish trend reaching $109,720. Despite this positive momentum, investors are showing more caution according to K33 Research, adopting a defensive posture towards Bitcoin.
The latest fundamental news has been favorable for Bitcoin in recent days :
- Trump’s Big Beautiful Bill is coming to its conclusion soon.
- The Trump Administration is considering flooding the market with short-term Treasury bonds; a measure favorable to the economy, putting upward pressure on inflation and making Bitcoin more attractive than the US dollar.
Despite these promising developments, investors are adopting a cautious attitude, likely influenced by the significant price increases in previous weeks. Generally, during such periods, certain market segments seek to secure their profits.
K33 Research bases this observation on the CME Bitcoin Futures Premium, which fell to 6.5% on Monday, its lowest level in 8 days. A decline in the premium means investors are less willing to pay to hold futures contracts, indicating lower confidence in price increases.
This is remarkable because there are currently enough positive fundamental factors to support Bitcoin. A price explosion could occur if these investors suddenly become overwhelmed by FOMO and rush into the market.
Waiting for a Clear Breakout for BTC
Many traders may be waiting for definitive confirmation of the breakout. Currently, Bitcoin is trading outside its closed price range between $105,000 and $108,800, currently at $109,300.
But as trader Killa indicates, investors who bought the April bottom are taking profits. This is demonstrated by the sell wall observable on Coinglass. More than 528 BTC are placed for sale on Binance at $110,000. Traders are surely waiting to see if BTC can absorb these sales or not.
Nevertheless, Bitcoin is currently managing to stay above the support at $108,800 and could well display a new ATH today. However, the rise could be slower than expected with these sell walls up to $113,000.
According to the STH MVRV, the next targets are at $116,000 and $123,000 for Bitcoin. According to trader George, BTC could even target $130,000 in the coming weeks.
