Bitcoin Price (BTC) News: Testing $110K Level Again

Bitcoin recaptured the $110,000 stage for the second consecutive day, maybe dragged greater by even bigger beneficial properties amongst altcoins.

Up 0.9% greater than 1% within the final 24 hours, bitcoin was buying and selling simply above $110,000 shortly after the shut of U.S. inventory markets Tuesday. The CoinDesk 20 — an index of the highest 20 cryptocurrencies by market capitalization, excluding stablecoins, change cash and memecoins — has risen 3.3% in the identical time period, largely due to ether

, solana , chainlink all gaining 5%-7%.

The standout performances, nonetheless, had been placed on by uniswap

and aave , which soared a whooping 24% and 13%, respectively. The transfer was prompted by optimistic feedback on the subject of DeFi by Securities and Exchange Commission (SEC) Chair Paul Atkins on Monday.

Things have remained comparatively calm on the equities entrance, with most crypto shares flat on the day. A notable exception is Semler Scientific (SMLR), a agency that goals to observe Strategy’s (MSTR) playbook and vacuum up as a lot bitcoin as doable. Shares fell one other 10% right now, with the inventory now buying and selling for lower than the worth of the bitcoin on its stability sheet.

Despite the day’s beneficial properties, positioning throughout crypto markets nonetheless displays a largely defensive tone.

“Funding rates and other leverage proxies point toward a steadily cautious sentiment in the market,” Vetle Lunde, head of research at K33 Research, pointed out in a Tuesday report. “The broad danger urge for food is remarkably weak, provided that BTC is buying and selling near former all-time highs.”

Binance’s BTC perpetual swaps posted negative funding rates on multiple days last week, with the average annualized funding rate now sitting at just 1.3% — a level typically associated with local market bottoms rather than tops, Lunde noted.

“Bitcoin doesn’t often peak in environments with unfavorable funding charges,” he wrote, adding that past instances of such positioning have more often preceded rallies than corrections.

Flows into leveraged bitcoin ETFs paint a similar picture. The ProShares 2x Bitcoin ETF (BITX) currently holds exposure equivalent to 52,435 BTC — well below its December 2023 peak of 76,755 BTC — and inflows remain muted. This defensive positioning, according to Lunde, leaves room for a potential “wholesome rally” in BTC to develop.

Still, not all market watchers are convinced that the current price action marks the start of a sustainable breakout.

“Is this a real breakout that may proceed? In my view, most likely not,” said Kirill Kretov, senior automation expert at CoinPanel. “More doubtless, it’s a part of the identical volatility cycle the place we see a rally now, adopted by a pointy drop triggered by a unfavorable announcement or another narrative shift.”

According to Kretov, the present atmosphere favors skilled merchants who can navigate volatility-driven market construction. Technically, he sees BTC’s subsequent key help ranges at $105,000 and $100,000 — zones that may very well be examined if promoting stress returns.