Bitcoin Surges Above $109,000 Amid Market Optimism

Bitcoin (BTC) has rebounded strongly, trading above $109,000 after a Friday correction. This recovery is fueled by a combination of factors, including a delay in tariffs from the U.S. and robust institutional demand.

Trump’s Tariff Delay Boosts Bitcoin

President Donald Trump announced on Truth Social a delay in implementing a 50% tariff on goods from the European Union, pushing the date from June 1st to July 9th. This decision provided temporary relief to the market, which had reacted negatively to the initial tariff announcement on Friday, causing Bitcoin to drop by 3.9%.

The tariff delay has improved investor sentiment, leading to a slight increase in risk appetite. Stock and cryptocurrency markets responded positively during Asian and European trading sessions, with Bitcoin leading the recovery.

Institutional Demand for Bitcoin Remains Strong

Data from SoSoValue reveals that U.S. spot Bitcoin exchange-traded funds (ETFs) saw inflows totaling $2.75 billion last week, marking the highest figure since late April. This six-week streak of inflows has significantly boosted investor confidence, suggesting a potential continuation of Bitcoin’s price rally.

Concerns Remain Amid Geopolitical Tensions

The ongoing conflict between Russia and Ukraine presents a significant concern. Recent reports indicate a record number of drones launched by Russia against Ukraine, raising fears of further escalation. Donald Trump has also commented on the situation, expressing concern over Vladimir Putin’s behavior.

If the conflict intensifies, it could diminish investor confidence in risk assets like Bitcoin, potentially hindering its current rally as investors seek safer havens such as gold (XAU) and silver (XAG).

Bitcoin Price Forecast: Key Support Level Holds

Bitcoin reached an all-time high (ATH) of $111,900 on Thursday before falling 3.92% on Friday. However, it found support around the $106,406 level on Saturday and has since been recovering. As of Monday, it is trading around $109,760.

If Bitcoin continues its recovery and closes above its ATH, it could extend the rally towards a key psychological level of $120,000.

The Relative Strength Index (RSI) on the daily chart is at 67, trending upwards towards the overbought level of 70, indicating continued bullish momentum. However, the Moving Average Convergence Divergence (MACD) indicator shows convergence, suggesting indecision among traders.

Conversely, if Bitcoin faces a pullback and closes below the $106,406 support level, it could extend the correction to retest its next key support at $100,000.

Bitcoin, Altcoins, and Stablecoins: Key Definitions

• Bitcoin: The largest cryptocurrency by market capitalization, designed as a decentralized digital currency.
• Altcoins: Cryptocurrencies other than Bitcoin, with some excluding Ethereum from this category.
• Stablecoins: Cryptocurrencies designed to maintain a stable price, often pegged to a reserve asset like the U.S. dollar.

“Bitcoin’s resilience is being tested by both market forces and geopolitical events.”

Bitcoin dominance reflects the ratio between Bitcoin’s market capitalization and the total market capitalization of all cryptocurrencies, providing insights into investor interest.

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