Bitcoin (BTC) Price Tests New Highs, Breakout Toward $110,000 Could Be Imminent

Bitcoin is once again testing new highs after a 2.82% rally lifted its price to $105,941

Cryptocurrency markets are starting the new week on a positive note, with Bitcoin price showing signs of breaking out toward $110,000.

BTC/USD is trading up 2.82% for the past 24 hours, bringing its price to $105,941 by 08:00 ET (12:00 GMT). The world’s leading cryptocurrency is now testing the upper boundaries of a key resistance zone.

Bitcoin is struggling to break above $107,000 after bouncing back from the $102,500 support level earlier this week.

BTC had plunged below $104,000 after failing to break through the $104,200 resistance on Friday. But the cryptocurrency recovered sharply on Monday, breaking through the key resistance levels at $104,200 and $106,000.

It’s now trading firmly above the $105,500 level and the 100-hourly simple moving average, according to Kraken data. A bullish trend line is also forming near $105,800, which could provide some support.

On the other hand, the next major resistance levels are at $107,000, $107,200 and $107,500. If Bitcoin manages to close above these levels, the next stop could be at $108,800 and then $110,000—potentially setting a new all-time high.

Bitcoin’s previous all-time high of $109,358 was reached on January 20.

Bitcoin closed its highest daily candle in history on Friday, while institutional demand for the cryptocurrency also continues to grow.

Analysts noted that the cryptocurrency market may be forming a new macro higher high, which could signal that more strength lies ahead.

Institutions are now focused on accumulating Bitcoin in any dips, as evidenced by MicroStrategy’s purchase of 7,390 BTC last week, bringing its total to over 200,000 BTC.

Meanwhile, futures open interest also rose to a record $36 billion, indicating that leveraged traders remain quite confident in the market.

Crypto market today: Ethereum, altcoins also rise

Bitcoin’s rise comes as broader cryptocurrency markets also post gains.

World’s second-largest cryptocurrency, , dropped 0.46% over the past 24 hours to $2,026.69 by 08:00 ET (12:00 GMT).

The next major support level for ETH is at $1,960, with the 100-hourly SMA also closely followed at $1,964.

On the other hand, resistance levels to watch are at $2,000 and the 100-3 hourly SMA, currently trading around $2,030.

An evening session close above $2,030 could pave the way for a move toward $2,038 and then $2,070.

Other cryptocurrency showed gains in the 24-hour period, with gains of 0.38%, while dropped 0.24%.

Cryptocurrency traders are now focused on whether Bitcoin can break above the $107,500 resistance.

If successful, BTC could challenge the January record and potentially break above $110,000.

With ETF optimism, institutional buys, and macroeconomic clarity continuing to support bullish sentiment, any breakdowns in key support levels will be closely followed.

Failure to hold above $105,000 could push BTC back toward $104,200 or $102,500, both of which are closely followed support zones.