Bitcoin broke through $108,000 before experiencing a pullback. How should we trade in the upcoming market?

According to market data from Gate.io, last night at 10 PM, BTC briefly surpassed $108,000, setting a new historical high, and it has since slightly retraced. The current price of BTC is $104,350, with a 24-hour decline of -2.5%. The current circulating market cap of BTC is $2.06 trillion, holding a market dominance of 56.7%. According to Farside Investors, the net inflow into Bitcoin spot ETFs in the U.S. reached $490 million yesterday. Among them, BlackRock’s IBIT saw a net inflow of $737 million, Fidelity’s FBTC had a net outflow of $128 million, and Grayscale’s GBTC experienced a net outflow of $84.7 million. What does the market outlook look like?

BTC Market Analysis

Trading Data

• Current Price: $103,750.92 USDT
• 24-Hour Price Change: -2.63%
• 24-Hour High: $108,374.89 USDT
• 24-Hour Low: $103,123 USDT
• Support Level: $103,104.3 USDT
• Resistance Level: $107,777.1 USDT
• Fear and Greed Index: 87 (Extreme Greed)

  Trading Strategy Suggestions

  Strategy 1: Short-Term Short Strategy

• Direction: Short
• Entry Price: $103,700 USDT (near current price)
• Stop-Loss Price: $104,500 USDT (above resistance level)
• Target Price: $102,500 USDT (near support level)
• Reason: Current market sentiment is extremely greedy, which may lead to a price correction. The RSI indicator shows overbought conditions, and there may be selling pressure in the short term. The price is close to the support level, and if it breaks below that, it could accelerate the decline.

  Strategy 2: Short-Term Long Strategy

• Direction: Long
• Entry Price: $103,200 USDT (near support level)
• Stop-Loss Price: $102,800 USDT (below support level)
• Target Price: $106,000 USDT (near resistance level)
• Reason: If the price rebounds near the support level, it may attract buying interest. The recent large outflow of funds may lead to a rebound in the short term. The target price is close to the resistance level, making it suitable for short-term trading.

  Outlook

  Bitcoin’s slight retracement after its initial breakthrough of $108,000 has traders awaiting the anticipated Federal Reserve interest rate cut decision and assessing the optimism surrounding incoming President Trump’s support for cryptocurrency. Trump has pledged to introduce friendly regulatory policies aimed at establishing U.S. dominance in the cryptocurrency space and supports the idea of creating a strategic national Bitcoin reserve. The upcoming addition of MicroStrategy to the Nasdaq 100 index also adds to this optimistic sentiment, as it opens up further opportunities for the company to profit from Bitcoin investments.
  The market widely expects the Federal Reserve to cut rates by 25 basis points again early Thursday morning, but the clarity of future policy direction has diminished due to strong U.S. economic growth and inflation risks stemming from Trump’s broader agenda.
  
  

  Author: Icing, Gate.io Researcher
  

  *This article represents only the views of the researcher and does not constitute any investment suggestions. Investment involves risks and users need to make careful decisions.
  

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