Bitcoin price is regaining new bullish momentum after filling a key CME gap

Bitcoin price is regaining new bullish momentum after filling a key CME gap, with traders focusing on a possible break to $108k.

Key Insights:

* Bitcoin price is regaining new bullish momentum after filling a key CME gap, with traders focusing on a possible break to $108k.

* The recent gap fill gives the market a technical reset while it strengthens the wider uptrend as institutional flows remain strong to pour into digital assets.

* However, some caution is maintained as historical patterns indicate the possibility of volatility nearby this critical level.

Bitcoin price has just filled a major CME gap, a key technical milestone that often precedes significant moves. According to The Cryptomist, the CME gap which was created as a result of a swift price increase earlier this month has now been filled, and this could lead to another push towards $108,000.

The latest chart posted by The Cryptomtomist on X, formerly Twitter, shows BTC price stabilizing at $103,000, with an upside target of $108,000 if momentum is maintained. This goes with overall trends on the market because institutional interest maintains the demand for digital assets.

This was confirmed by CoinShares which revealed that capital into crypto funds locked in a new weekly inflow of $867 million, with Bitcoin focused products leading the way. The firm’s report for the week ending August 18 also stated that the recent inflows took YTD inflows to $6.7 billion.

This increased institutional investment is an indication of increasing confidence in Bitcoin as a store of value and as a hedge against macroeconomic uncertainty.

According to on-chain data, there has been a surge in miner profitability, reflecting the strong price recovery. Early Bitcoin miners have now realized over $10.37 million in profits, as the BTC price recently surged past $102,000. This profit spike is significant and underscores the broader recovery in the crypto market.

According to Ali Martinez, an analyst at The Chart Setup, this miner profit spike correlates remarkably well with the recent price breakout, further supporting the bullish sentiment for BTC. In the past, miner profitability has played a key role in determining the market direction.

However, despite the bullish signals, some caution is necessary. According to Alphractal data, the 3- month percentage change in Bitcoin recently turned positive, suggesting there is upside but also trends to the risk of volatility.

Historical data warned that similar green flips have in the past few years been followed by sharp reversals which trap momentum traders in the stacks.

The aggregated funding rate, one of the main sentiment markers, is also rising constantly, hitting 0.0132 at the time of writing. This indicates increased bullish sentiment but also indicates that if price does not hold the current levels, then liquidation is likely to occur.

Moreover, the global macroeconomic trends are bringing more complexity to the forecast. According to CoinShares, the recent capital inflows seem related to the overall economic issues such as increased inflation and declining growth rates in key economies.

This backdrop has spurred a renewed interest in Bitcoin as a hedge, especially as some states within the U.S., such as Arizona, consider the addition of BTC to their strategic reserves.

With Bitcoin holding above the $100K critical point, traders are now centered on the $108K target, as outlined by The Cryptomist. If BTC price can break above this level it may drive a new wave of buying up towards the next resistance at around $120K.