Bitcoin rose above $106,000 on Tuesday, traders said, helped by signs that Congress could end the 41-day U.S. government shutdown, stronger bets that the Federal Reserve will cut interest rates and new balance sheet buying by companies. The latest BTC corporate purchases from Strategy and Strive and a cleaner technical setup above $105,000 complete the five factors supporting this move, refocusing the $107,000 to $110,000 band.
Bitcoin receives policy relaxation as closure agreement is finalized
The rally began with Fox News correspondent Chad Pergram confirming that Congress has reached a deal that could end the government shutdown within days. This announcement has restored investor confidence in global markets, especially in digital assets.
Interest rate cut bets rise, driving traders back to BTC
Second, prediction market investors were quickly pricing in an increased likelihood that the Federal Reserve would cut interest rates to 72% in the past 24 hours. The combination of macroeconomic relief and dovish policy expectations is driving renewed risk appetite, driving Bitcoin higher.
Institutional Buying Fuels Recent Bitcoin Rally
Announcements from major companies highlight strong demand from institutional investors as the third reason for the continued recovery in BTC prices. In an official post on X, Strive announced that it had acquired 1,567 BTC worth approximately $162 million at an average entry price of $103,315 per coin. The company currently holds a total of 7,525 BTC, increasing its balance sheet exposure to Bitcoin as a reserve asset.
Adding to the bullish momentum, Strive’s SATA stock, which recently listed on the Nasdaq after an oversubscribed and scaled-up IPO, confirmed that its upcoming dividends will be classified as return on capital (ROC), a structure considered crypto-friendly among institutional investors.
Meanwhile, Strategy also added a fourth bullish catalyst as CEO Michael Saylor revealed that the company purchased 487 BTC worth $49.9 million at an average price of $102,557 per coin. Strategy holds 641,692 BTC worth $47.54 billion, with an average purchase price of $74,079 and a year-to-date BTC yield of an impressive 26.1%.
Technicals are back in bullish territory above $105,000 and $110,000 is now in sight
Bitcoin Price Prediction: MACD Cross Tips Leg High to $107.5,000
Bitcoin price is currently trading around $105,048, with a 62% chance of breaking through the November low. The 1-day chart shows BTC reclaiming the Donchian Channel mid-band near $107,651, which is acting as the first major resistance level. A daily close above this level could pave the way for a retest of Donchian’s $116,410 ceiling that capped the October high.
Bitcoin price prediction |Source: TradingView
From a technical perspective, the MACD histogram has become narrower with bright red bars showing that the bearish momentum is weakening. The MACD and signal lines (-2,472 and -2,210) are converging quickly, an early sign of an impending bullish crossover.
Trading volume was strong at $805.5 million, with active accumulation confirmed as BTC makes new lows near the $100,000 support zone. While the $98,892 Donchian floor forms a solid structural foundation, the upside resistance range between $107,000 and $110,000 remains the next important target for bulls.
If Bitcoin closes above $107,651, momentum could accelerate towards $115,000 and $116,000 in the coming sessions. Conversely, a rejection below $100,000 could expose the lower bound, but this scenario seems unlikely given Monday’s stronger macro sentiment and increased demand from institutional investors such as Strategy & Strive.
Disclaimer: The information contained in this article is for informational and educational purposes only. This article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the use of the content, products, or services mentioned. We encourage our readers to do their due diligence before taking any action related to our company.
