Bitcoin Price Nears $110K Support As Institutional Accumulation Grows

Bitcoin price came within touching distance of the psychological $110k mark on Wednesday, rising strongly to hit three-week highs of $109,802. At the time of writing, the coin was up by 3.4%, staying on course to register the biggest gain in eight days. That momentum is contrarian to the downward trajectory seen in the last two days after being rejected at the $108k support for the umpteenth time.

The crypto market bellwether is likely to stay on the upside going by the 20% uptick in its 24-hour trading volume amid the price uptick. That signals growing appetite among investors, which augurs well for its traction.

Institutional inclination towards the coin has been strong, with BlackRock’s iShares Bitcoin Trust adding $3.85 billion in June. Meanwhile, market leader, Strategy bought about $64 billion worth of the coin. That has helped create a positive sentiment across the market in the absence of strong fundamental catalysts.

Elsewhere, BTC exchange outflows rose to -$1.33 billion in the last seven days, signaling low selling pressure. Furthermore, Coinanalyze data shows that the value of BTC open interest contracts rose by 6.42% in the last 24 hours to $34.5 billion in the last 24 hours, adding credence to the upside view. In addition, the coin’s daily RSI is at 59.

Bitcoin Price Prediction

The momentum on Bitcoin price calls for further upside above $108,740. That will likely meet initial resistance at $110,000. Breaking above that level will signal a strong momentum that could send the action higher and test the second hurdle at $110,545.

However, if the price breaks below $108,740, the momentum will favour the downside, with primary support coming at $107,770. The upside narrative will be invalid if the price breaks below that level. Also, a stronger momentum could extend the decline and test the second support at $106,685.

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