- Michaël van de Poppe believes that a breakout towards $107K should lead to a rally, although altcoins will perform better if geopolitical tensions ease.
- Bitcoin is holding resistance at $108,064 as inflows to ETF and the acquisition of 1,112 BTC by Metaplanet have increased buyer confidence.
- Technical indicators suggest rising volatility, and a breakout above $111,980 could push Bitcoin toward $116K or higher.
Michael van de Poppe, a renowned crypto analyst, has noted in a post on X that Bitcoin is looking to breakout in a big way, but a little pullback is expected first, followed by sharp movement above $107,000. He also said that the geopolitical cooldown in the Middle East could boost the move, and the altcoins might begin to outdo once Bitcoin settles.
Bitcoin recovered forcefully on Monday, hitting over 107,000 during the European session. This price has breached notable resistance of $106,406 and is currently facing the level of the $108,064 price, a Fair Value Gap (FVG) that is considered bearish. A daily close above it may facilitate a rally to the May 22 all-time high of $111,980.
The tension in the Middle East has increased, but purchases in the market have not slowed down. Van de Poppe added that traders regularly overlook opportunistic entry points and the given configuration could be gracious to nonchalant buyers in case of a bearish breakout.
ETF Inflows and Corporate Accumulation Fuel Price Strength
Institutional investment is still entering Bitcoin. CoinShares reported 1.9 billion in inflows into digital asset products last week. The inflows to Bitcoin-specific products reached 1.3 billion a week, closing a short-lived outflow phase and indicating increased institutional trust once more.
The iShares Bitcoin ETF by BlackRock was the most active, with almost $1.5 billion, which is a positive sign that many traditional investors were interested. Crypto ETPs had assets under management of $179 billion, compared to assets under management of $175.9 billion the previous week.
Corporate activity has also been on the rise. Metaplanet increased its Bitcoins to 10,000, with an addition of 1,112 BTC. The action came after a 210 million bond issuance to fund additional Bitcoin purchases, further solidifying the firm’s crypto-centric treasury plan.
Volatility Indicators Point to Major Move
The volatility spike is imminent based on the technical arrangement of Bitcoin. The widening of Bollinger bands is likely to trigger significant price shifts. Concurrently, traders are monitoring a MACD histogram move into positive territory, which was the case before the 2020 and 2024 bull runs.
The RSI is neutral at about 50, whereas the MACD has just shown a bear crossover. Support of between $100,000 and $105,000 remains high, although mixed signs have been observed. Any unsuccessful breakout can lead to a retest to the 50-day EMA at $102,943. An upside breakout over $108,064 would, however, signal a clean run into the $112,000 zone and beyond.
Should Bitcoin take out its former peak of 111,980, further milestones of 116,000 and 120,000 will come into view. With accumulation news making ETFs flow with a lot of money as volatility gains momentum, the market might be at a critical point.
