Bitcoin price is attempting to break into the $110k psychological level

Bitcoin price is attempting to break into the $110k psychological level on the heels of renewed optimism following US-EU trade tariff calm.

Bitcoin price is attempting to break into the $110k psychological level on the heels of renewed optimism following US-EU trade tariff calm. The coin registered gains in the last two days, and trades at $109,734 as of press time.

BTC price has seen gains of 17.5% in the last one month, beating gold, which lost 0.3% in the same period. The cryptocurrency fundamentals also got another support as the US State of Florida proposes doing away with state capital gains tax.

Bitcoin price upside is also supported by a 6.7% jump in its trading volume to $46.33 billion in the last 24 hours, despite the price rise. That points to a growing confidence in the coin’s potential performance in the coming days, validating the need to keep buying despite the price rise.

Also, Open Interest contracts grew by 0.7% to $36.7 billion in the last 24 hours, adding credence to that view. In addition, Bitcoin saw $1.2 billion worth of net outflows in the last seven days, pointing to declining selling pressure.

Meanwhile, institutional appetite for Bitcoin is growing strong, raising the coin’s adoption levels into the mainstream economy. Strategy, the poster child of institutional acquisition of Bitcoin purchased 4,020 BTC worth $427.1 million between May 19-25. That purchase is already in profit, having been done at an average price of $106,237.

Bitcoin price prediction

The momentum on Bitcoin price calls for further upside above $109,210. That sets up the coin to encounter the first resistance at $110,200. Breaking above that level will signal a stronger momentum that could take the action higher to test $111,120.

Conversely, going below $109,210 will favour the sellers to take control. The coin will likely find the first support at $108,390. The upside narrative will be invalid below that level. Moreover, an extended control by the sellers could extend losses and test $107,610.