Bitcoin has crossed back over $100,000 not long ago breaking a key psychological milestone in its new bull market. The cryptocurrency’s comeback has even inspired bullish enthusiasm from mainstream and cryptocurrency investors & analysts, suggesting a prolonged rally may lie ahead. This movement validates a recovery rally after retaking the $100k barrier.

The digital asset soared to $104,300 before retracting a tad to a current price point of $103,237. This is the first unequivocal break above the long-standing line of resistance around $100,000 since February, bringing renewed euphoria to the crypto-verse. Proving this point is the recent surge after weeks of sustained bullish momentum, indicating the underlying demand for Bitcoin has never been stronger.

Technical Indicators Confirm Bullish Trend

Bitcoin’s daily chart a strong bullish market trend, as seen in its high of at $104,332. Volume has skyrocketed — both to a staggering degree. This breakout helps confirm the breakout above $100,000 resistance, which has since flipped to become immediate support. The bullish impulse was triggered after the cryptocurrency established support above the 200-day Exponential Moving Average (EMA) of $86,845. It achieved a bullish breakout past the 200-day Simple Moving Average (SMA) $91,050.

The 30-Day Capital Rotation for Bitcoin is currently at 16.7%. In the past, tops above 35% on this measure have indicated euphoric, speculative Bitcoin rallies. If this trend continues, there is hope for even greater gains. This may indicate that the market is about to enter a phase of heightened speculative behavior.

The next major resistance level for Bitcoin is seen at $103,600. If this resistance line is broken with conviction, it might pave the way for greater bullish follow-through. This could propel Bitcoin to make new all-time highs! Investors and analysts alike are watching these levels as an important indicator of how strong and sustainable this new rally will be.

Market Sentiment and Future Outlook

Bitcoin’s strong price action over the past month signals a decisive bullish turn in the market’s sentiment. The ability to break above $100,000 suggests a strong conviction among investors that the cryptocurrency has more room to grow. This breakout, following weeks of powerful bullish movement, is a clear sign that enthusiasm is building around Bitcoin’s long-term trajectory.

If Bitcoin is able to close above the $100,000 mark, it will be instrumental in confirming this breakout. This may indicate that a new rally is beginning in this short bull cycle. Ongoing stability around these levels would further bolster the case for Bitcoin’s maturation to an asset class. This increase in stability is a positive indicator for institutional and retail investor acceptance. Market participants are still closely watching to see if a trend weaker or perhaps even a reversal establishes itself in the next few days.

Ironically, the recent momentum in Bitcoin’s price has provided a huge boost to the overall cryptocurrency market. Most altcoins have been rising alongside Bitcoin, a testament to the digital asset’s ability to boost the broader cryptocurrency market’s mood. This relationship highlights Bitcoin’s position as a bellwether for the entire cryptocurrency market.

Factors Driving the Rally

Here are a few reasons that might explain the recent ramp-up in BTC prices. One factor driving interest in cryptocurrency has been the rise of institutional adoption. Retail investors, increasingly spooked by inflation, all provide further inflow firepower. The Bitcoin ecosystem moves pretty fast. So new developments in scaling solutions like optimism, layer-2 capabilities and growing smart contract functionality are definitely bringing in more users and investors.

Businesses such as Overstock, TigerDirect, and Expedia are on the cutting edge of accepting Bitcoin payment in record numbers. This burgeoning acceptance widens Bitcoin’s utility and appeal. As more businesses integrate Bitcoin into their operations, the cryptocurrency's network effect strengthens, further solidifying its position as a leading digital asset. The synergy of these factors has produced an exciting and hospitable environment for Bitcoin’s sustained trajectory.