Bitcoin's Bullish Momentum Persists Despite Price Retreat

Bitcoin briefly surged to $108,250 on Wednesday before retreating to $107,446.08 as of 4 p.m. ET, reflecting a modest 24-hour gain of 0.17%. This pullback comes amid strong institutional inflows and supportive macroeconomic signals, reinforcing the underlying bullish sentiment. According to Omkar Godbole, the Federal Housing Finance Agency's directive to include cryptocurrency in mortgage assessments signals deeper adoption, potentially boosting demand for BTC and other digital assets. Simultaneously, the Federal Reserve's plan to ease bank capital requirements enhances fiat liquidity, historically a catalyst for crypto rallies. With the dollar index declining 0.56% to 97.14 and Nasdaq futures hitting record highs, risk-on sentiment remains elevated, positioning Bitcoin for potential upside if key resistance levels are breached.

Institutional Flows and Market Indicators Signal Strength

Spot Bitcoin ETFs recorded a net inflow of $548 million, marking 12 consecutive days of positive flows and bringing cumulative net inflows to $48.12 billion, according to Farside Investors. This consistent demand underscores institutional confidence, with total BTC holdings now at approximately 1.23 million. Metaplanet's acquisition of 1,234 BTC for $133 million further exemplifies corporate treasury strategies shifting toward crypto, elevating Bitcoin's status as a reserve asset. The broader crypto market capitalization rose to $3.31 trillion, approaching a critical volatility threshold identified by FxPro's Alex Kuptsikevich. He noted that the Fear and Greed Index climbed to 74, just below the extreme greed zone, indicating heightened market enthusiasm. Such metrics suggest that while short-term pullbacks may occur, sustained inflows and sentiment support a bullish trajectory, with $110,000 as the next key resistance.

Trading Opportunities in Derivatives and Technical Setups

Derivative markets reveal nuanced positioning, with Bitcoin perpetual futures open interest rising on major exchanges, hinting at hedging activities against potential dips. For instance, BCH, PEPE, and XMR saw the largest increases in open interest over 24 hours, while CME BTC futures open interest reached a four-week high of 159,850 BTC. However, the basis remains flat below 10%, weakening the bullish narrative slightly. Technical analysis highlights a golden cross forming on the Binance-listed BTC-BCH pair, where the 50-day SMA is poised to cross above the 200-day SMA, a long-term bullish indicator. Bitcoin currently trades near support at $106,400 (24-hour low), with resistance at $108,500. Traders should monitor ETH's performance, up 1.29% to $2,473.17, for correlated opportunities, especially with spot ETH ETFs showing a $60.4 million inflow.

Upcoming catalysts include CME Group's introduction of spot-quoted futures for BTC, ETH, and major U.S. equity indices on June 30, pending regulatory approval, which could enhance liquidity and trading volumes. Macroeconomic data releases, such as May durable goods orders and Q1 GDP figures on June 26, may influence sentiment; weaker-than-expected data could accelerate Fed rate cut expectations, benefiting risk assets like crypto. In this environment, strategies such as buying dips near $106,500 or leveraging altcoin pairs like SOL-BTC, which gained 2.66% to 0.001370, offer high-reward setups. Overall, Bitcoin's retreat from $108K appears temporary, with institutional adoption and technical strength paving the way for renewed highs.