Bitcoin continues to rise, surpassing significant price levels and provoking active discussions among investors. The market is gearing up for further breakthroughs and growth opportunities.
Strategy and Speculation
The key catalyst for the rise was a July 13 post from MicroStrategy founder Michael Saylor, hinting at a resumption of corporate Bitcoin purchases. While unconfirmed, the post included a Bitcoin chart labeled 'Strategy', reigniting speculation that the firm will soon resume BTC purchases after a 12-week pause. Historically, rallies in MSTR stock—like the recent 8% surge—have preceded large Bitcoin buys by the company.
Technical Breakout Confirms Bullish Trend
Bitcoin's price decisively cleared the $118K resistance, breaking above its 7-day simple moving average ($112,678) and the key Fibonacci 23.6% retracement level at $114,001. Momentum indicators support the breakout:
* RSI-14 reached 72.79, indicating strength but not extreme overbought conditions. * MACD histogram rose to +1,027, signaling accelerating bullish divergence. * If $118K holds, the next technical target sits at $124,451, the 127.2% Fibonacci extension level.
Market Dynamics: Shorts Wiped Out and ETFs Pouring In
The rally was amplified by market mechanics, with $3.66 million in BTC short positions liquidated in the past 24 hours compared to just $197,000 in longs, according to U.Today. This imbalance forced bears to cover, adding upside fuel.
**Supporting flows remain robust:**
* Spot BTC ETFs absorbed $1.18 billion in weekly inflows. * Unconfirmed reports suggest $554 million in BTC buys by private and corporate treasuries. * On-chain data shows exchange reserves at decade lows, with just 1.25% of supply available on trading platforms.
Bitcoin's new milestone reinforces the ongoing bullish cycle in the market. With strong ETF flows, increasing institutional interest, and aligned technicals, the crypto market appears poised for further price discovery.
