Bitcoin (BTC) has once again experienced a highly volatile week, dropping to a weekly low of $97,700 on Monday before quickly recovering and surging above $105K in less than three days. The sudden rebound has reignited optimism among investors, with many now anticipating a continuation of the bullish trend.
Adding to the positive sentiment, the Federal Reserve’s latest meeting provided an optimistic outlook on the U.S. economy, further boosting confidence in risk assets like Bitcoin. With growing institutional demand and strong technical recovery, BTC looks well-positioned to test all-time highs once again.
Recent data from Glassnode also highlights an important trend: retail participation remains lower compared to previous market peaks. Historically, bull markets tend to accelerate when retail investors flood in, meaning that the current lack of retail activity could signal untapped upside potential. If history repeats, Bitcoin may be entering the early stages of its next major rally.
With key support levels holding strong and macroeconomic conditions favoring risk assets, BTC appears ready to continue its upward trajectory, setting the stage for another attempt at price discovery. The coming days will be crucial in determining whether BTC can maintain its momentum.
Bitcoin Eyes $110K as Bullish Momentum Builds
After weeks of uncertainty and market swings, Bitcoin’s bullish outlook is becoming clearer as the price approaches all-time highs (ATH) and nears the crucial $110K mark. Analysts are now calling for a massive surge, predicting that Bitcoin’s next bullish phase will not only push BTC into new highs but also lift strong-performing altcoins alongside it.
Key on-chain data from Glassnode supports this upside potential, revealing that retail investor participation remains lower compared to previous market peaks. One way to measure retail investor activity is by tracking the Spent Volume of wallets holding less than 0.1 BTC. At its peak in November 2024, retail investors were spending $20.6M per hour. Today, that figure has dropped to $10.7M per hour, marking a 48% decline.
This decline in retail activity suggests that the current rally still has room to grow, as Bitcoin has historically seen its strongest rallies when retail investors flood in. With institutional demand rising and key support levels holding strong, Bitcoin is positioned for a potential breakout beyond ATH.
As BTC approaches price discovery, the next few trading sessions will be critical in determining whether the breakout will happen soon or if BTC will consolidate before its next major move upward.
Price Holds Above Key Level
Bitcoin is trading at $104,900, maintaining strong momentum as it approaches key resistance at $106K. If BTC clears this level, the next logical move would be a break above all-time highs (ATH) and a test of the critical $110K mark. Given the recent bullish sentiment, analysts are expecting a potential price discovery phase if BTC successfully pushes past these key levels.
However, bulls must defend the $103,600 level to maintain short-term momentum. This level has acted as a pivotal support zone, keeping BTC in a bullish structure. Losing this support could trigger a short-term pullback, forcing BTC to retest the $100K psychological mark.
For now, Bitcoin’s price action remains strong, and if bulls continue to hold key support levels, a breakout beyond ATH could be imminent. The coming days will be crucial, as BTC needs to hold above $103,600 and clear resistance at $106K to confirm its next leg higher. If successful, Bitcoin could be on track for its biggest rally yet, pushing deep into uncharted price territory.
Featured image from Dall-E, chart from TradingView
