Bitcoin Price Breaks USD 108,400, Bullish Signal Strengthens
Technical analysis shows an inverse head and shoulders pattern on the hourly chart, indicating that Bitcoin could potentially rise to USD 109,000. However, the key resistance remains at USD 110,500. Despite this, the Relative Strength Index (RSI) suggests an overbought condition, signaling a possible short-term correction.
If a correction occurs, the key support level is at US$106,000 or the 200-period Exponential Moving Average (EMA). Overall, the short-term trend remains bullish as long as this level is not breached.
Market optimism is boosted by the prospect of the Federal Reserve cutting interest rates sooner rather than later. Fed Governor Christopher Waller hinted at a potential rate cut at the upcoming FOMC meeting on July 29-30, in line with Jerome Powell’s previous statement on the possibility of two rate cuts this year.
Historically, low interest rates have a positive impact on risk assets like cryptocurrencies, as borrowing costs decrease and investors seek more aggressive investment alternatives. A rate cut would lower borrowing costs and drive investors to shift their funds to assets like Bitcoin and Ethereum.
With strong inflows into Bitcoin spot ETFs, the opportunity for BTC to test the all-time high at USD 111,970 (Rp1.81 billion) is becoming more promising. Recent data shows that Bitcoin ETFs in the US have attracted over USD 9 billion since the beginning of the year, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the inflows. On May 22, Bitcoin ETF recorded a daily inflow of USD 432 million, one of the highest in history.
