Bitcoin surged above $109,000 on Wednesday after briefly retesting the $105,200 support level earlier in the day . Despite Bitcoin trading just 2% below its all-time high, traders remain reluctant to turn bullish, according to BTC derivatives metrics . This cautious stance has led some investors to question the rally's sustainability .
According to Cointelegraph, the Bitcoin futures premium remained below the 5% neutral threshold on Wednesday . The slight increase from 4% on Monday continued a trend that began on June 11, when the indicator last approached bullish territory, coinciding with Bitcoin's previous test of the $110,000 level .
While it is difficult to identify a single catalyst for Wednesday's rally, the eurozone's record-high broad money supply (M2) in April likely played a significant role . The data, released Monday, showed a 2.7% year-over-year expansion, aligning with the expansionary trajectory of the US monetary base . Meanwhile, ADP data showed US private payrolls fell by 33,000 in June .
Some market participants argue that the subdued demand for leveraged long positions in Bitcoin reflects the heightened economic recession risks .
Meanwhile, Bitcoin signals increasing bullish momentum, returning above $107,000 despite spot ETF outflows .
On the other hand, there is also the view that Bitcoin is currently merely floaty and unconvinced . In actuality, neither bulls nor bears appear willing or able to lead this market's next leg despite the price moving around $107,000 . Before price is momentum, and the momentum profile is painfully obvious: there is no strength . The RSI indicator is in a dead zone, meaning there is no directional bias in the low 50s .
Any attempts at an upside continue to be capped by the descending resistance line from the previous swing top, which was around $112,000 anyway . Every attempt to reach that level has been met with immediate rejection and exhausted purchasing .