Bitcoin’s price has risen 2% this past week, marking annual gains of 4.7%. Despite macroeconomic challenges, Bitcoin’s dominance remains at 60%, with $5.6 billion inflows into ETFs. Technical indicators suggest a bullish outlook, and increasing open interest in futures highlights renewed trader activity. A potential break over $100,000 could target $122,500, indicating further upward momentum.

Bitcoin (BTC) has demonstrated positive momentum, with its price increasing by 2% over the past week, bringing its annual gains to 4.7%. Despite market fluctuations, Bitcoin’s dominance has remained stable at approximately 60%, indicating that the majority of investment in the cryptocurrency sector is directed toward BTC. Recent data from CoinShares reveals that, following a dip from the all-time high on January 20, Bitcoin spot exchange-traded funds (ETFs) experienced remarkable net capital inflows amounting to $5.6 billion.

The macroeconomic environment, including the Federal Reserve’s steady interest rate policy and political uncertainties such as Donald Trump’s trade war intentions, has posed challenges to the crypto market. Nevertheless, Bitcoin has maintained strong support at around $93,000 since early February, entering a consolidation phase. A Fibonacci retracement analysis indicates that BTC is positioned above the 23.6% retracement level, demonstrating resilience against selling pressure.

Technical indicators reveal a bullish sentiment as a symmetrical triangle pattern has formed from Bitcoin’s recent movements. The Relative Strength Index (RSI) has recently crossed above its signal line, which is often interpreted as a buying opportunity. Additionally, a decreasing trend in the Moving Average Convergence Divergence (MACD) histogram supports the potential for price appreciation.

Should Bitcoin achieve a decisive breach above $100,000, it would likely set the stage for a retest of its former all-time high. Forecasts suggest that a target of $122,500 could yield a potential gain of 25%. Traders may consider placing stop-loss orders below the 50% retracement level, leading to a risk-reward ratio of 1.9.

Moreover, Bitcoin futures saw a resurgence in open interest after reaching a three-month low of $57.1 billion on February 8. Current data from CoinGlass indicates that outstanding futures contracts have risen to $62.7 billion, suggesting that traders are repositioning for imminent price movements as the selling pressure diminishes. It is essential to note that Bitcoin continues to trade 14.5% above its 200-day exponential moving average, signaling a prevailing bullish long-term outlook.

In summary, Bitcoin is experiencing a period of positive price momentum, supported by strong capital inflows into ETFs. The technical indicators suggest that the cryptocurrency maintains a bullish sentiment, with key price levels indicating potential for substantial gains if certain thresholds are surpassed. Open interest in futures is also rising, reflecting renewed trader interest and positioning for market fluctuations, further underscoring Bitcoin’s resilience in a challenging economic landscape.

Original Source: www.fxempire.com

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