Bitcoin Price Eyes $108K ATH as Inflationary Fears Mount and BTC ETF Flows Boost Rally

Bitcoin (BTC) price had a strong start into the week, rising to multi-month highs following a spike in institutional flows led by MicroStrategy,  meanwhile fears of rising inflation continued to draw in more capital.

Bitcoin Market Movers: MicroStrategy and Metaplanet Accumulate BTC

MicroStrategy added $764.9 million worth of BTC to its treasury, which was followed by a class action lawsuit, accusing the firm of breaching federal securities laws.

Japanese investment firm Metaplanet also acquired $104.8 million in Bitcoin which brought its total holdings close to the $1 billion mark. The two transactions by MicroStrategy and Metaplanet likely had the largest impact on the asset’s surge to $107,148.

Investors See Bitcoin as a Hedge Against Rising Inflation

Apparently, investors are hellbent on using Bitcoin as a hedge amid a growing concern of inflation and the potential of hawkish monetary policies.

In their latest earnings call, Walmart stated the possibility of increasing prices across tariff-affected products, which the market interpreted as a sign of potential interest rate hikes.

Bitcoin Price Technical Analysis: Key Indicators

According to our Bitcoin technical analysis, the BTC trades at $104,482. BTC/USD has broken through key Fibonacci resistance levels, reclaiming the 0.5 level at $104,634 and is currently approaching the 0.618 level at $105,226.

If buyers can suppress selling around the current levels, a successful push past the 1.0 Fib extension at $107,141 could position BTC to retest the all-time high and trigger a move towards $110,240 and $115,254.

The recent bounce from the $102,000 support zone forms a classic bullish reversal pattern, which suggests strong buyer interest. However, the Stochastic RSI seems to be pointing at a bearish trend, which suggests Bitcoin is trending in the overbought zone.

At the time of writing, Bitcoin is trading at $104,491. Should the current momentum hold, Bitcoin’s price forecast suggests a bullish outlook to $110,240 soon. The digital asset looks primed for a strong breakout, fueled by growing institutional appetite, increasing ETF flows and the rising concerns of inflation risks.