Bitcoin prices soared to more than $106,000 on Monday, regaining ground lost during a volatile weekend when the price briefly fell below $100,000 on Friday.
Despite bearish pressure early in the week, buyers repeatedly intervened at key support levels. Bitcoin price rose 1% in 24 hours throughout the day.
Over the past week, Bitcoin prices have fallen below the $100,000 threshold multiple times, dropping slightly below on Tuesday, Wednesday, and Friday. However, the bulls quickly defended these levels to prevent a daily close below $100,000.
The 55-week exponential moving average (EMA) at $99,000 has repeatedly served as a reliable support floor and provided a strong foundation for the current rebound.
Technical analysts are currently pointing to $109,400 as the next Fibonacci resistance, with $111,000 becoming a bigger barrier if Bitcoin can maintain its momentum. Above these levels, $116,000 is considered a decisive threshold that could firmly change market sentiment to bullish.
Group activities played an important role in recent meetings. Strategy, the world’s largest corporate Bitcoin holder, revealed last week that it had acquired 487 BTC for $49.9 million, bringing its total holdings to 641,692 BTC, valued at more than $47.5 billion.
The acquisition, which was financed through multiple preferred stock offerings, is Strategy’s largest acquisition since September and confirms institutional investors’ continued confidence in Bitcoin as a Treasury reserve asset.
Strategy’s innovative use of its preferred stock series, including STRC “Stretch” shares, demonstrates the company’s sustainable and systematic approach to Bitcoin accumulation and provides a blueprint for other companies entering the space.
Market sentiment is further influenced by broader macroeconomic conditions. Rumors about a possible end to the U.S. federal government shutdown have boosted investor confidence, suggesting a rise in the Nasdaq could lead to renewed buying pressure on Bitcoin.
However, analysts warn that macroeconomic turmoil and prolonged government dysfunction could dampen momentum and push Bitcoin prices towards support levels near $96,000 or, in an extreme scenario, $93,000.
Technical model of Bitcoin price
Data-driven models also indicate that the next bear market in Bitcoin price may be shallower than previous cycles. Indicators such as the MVRV ratio and rising production costs suggest that there is structural support in the $55,000 to $70,000 range, giving confidence that the retracement may not be as severe as in past cycles. While the cyclical pattern continues, institutional adoption and market maturation are gradually reshaping the dynamics of volatility.
Looking ahead, traders and investors will be keeping a close eye on key resistance levels. The short-term rally may encounter hurdles at $109,400 and $111,000, but a sustained push above $116,000 could unleash a broader bullish trend towards the top of the widening wedge pattern near $129,000.
The post Bitcoin Price Surges Above $106,000 Following Weekend Recovery was originally published in Bitcoin Magazine and was written by Micah Zimmerman.
