BTC Capped at Highs

Following a strong rally off the 100,195 mark, BTC has stalled for now into the latest test of the 107,855 resistance. This level ahs proved a firm barrier over the last two weeks. However, while above the $100k mark the focus is still firmly fixed on an eventual breakout higher. Indeed, current BTC price action can be seen as a holding pattern ahead of an expected bullish break.

Institutional Demand Soaring

The latest data this week shows a solid uptick in institutional demand for Bitcoin with BTC inflows soaring. Funds recorded a more than 500% increase on the prior week with ETH ETFs also recording strong inflows. The surge in demand is being attributed to Trump signing an executive to establish and advisory group on crypto tasked with exploring stockpiling digital assets. The move has been seen as laying the groundwork for a US strategic BTC reserve which, if established, would be firmly bullish for BTC and the wider crypto market.

Near-Term View

Against this backdrop, the outlook remains favourable for BTC with the market likely to rally on any crypto-positive noise from the president. However, a strong US Dollar could cause some near-term volatility if see the greenback rallying significantly in response to incoming trade tariffs. As such, traders should remain cautious until we have a clear directional catalyst for BTC.

Technical Views

BTC

BTC remains capped by the 107,855 level for now. However, with momentum studies bullish and considering the prior bull trend, the focus remains on an eventual break higher with 113,690 the next objective for bulls. If we break back below 100,105, however, 91,750 will be the next support to watch.