Bitcoin Hits $106,600 on Monday, Breaking Its Previous Record

Bitcoin made headlines on Monday by hitting a new all-time high, surpassing $106,600. This surge, according to Coinglass, resulted in the liquidation of derivatives holdings worth around $120 million. Analysts suggest that Bitcoin is currently in the "blue sky" zone, indicating potential growth toward $110,000.

Market Factors Driving Bitcoin’s Surge

A key factor behind this rise is increasing institutional demand, as seen through consistent Bitcoin ETF inflows over the past week. Additionally, President-elect Donald Trump's strategic Bitcoin reserve announcement further bolstered market confidence. Trump stated that the U.S. would adapt to crypto, sparking optimism in the market.

Market Sentiment and Indicators

The Bitcoin Fear and Greed Index currently reads 83 out of 100, signaling "extreme greed" among traders, a sentiment unchanged from the past week. Despite fears of a potential retreat, Bitcoin has remained resilient, maintaining momentum after crossing the $106,000 threshold.

As of Monday, Bitcoin’s market cap reached $2.071 trillion, with its price slightly retracting to $104,773. Many altcoins in the top 100 by market capitalization also rebounded from their weekend slump, showing slight gains.

Technical Analysis: Key Levels and Indicators

Bitcoin is now just 2% below its record high. The BTC/USDT daily price chart continues to show upward movement. Should Bitcoin face further corrections, the Fair Value Gap (FVG) between $102,650 and $104,259 could offer support.

Several key indicators suggest traders should remain vigilant. The Relative Strength Index (RSI) currently stands at 68, and a break above 70 would signal a potential sell. The MACD is flashing red histogram bars below the neutral line, pointing to negative momentum. However, a MACD line crossover on the signal line could indicate a shift in momentum.

Future Outlook

Looking ahead, Bitcoin could climb to $131,252, which corresponds to the 161.80% Fibonacci retracement of the move from the November 4 low of $68,835 ..