Bitcoin Holds $98K as Bulls Eye Breakout—Is a $108K Surge Coming?

Bitcoin managed to hold steady above $98,000 on February 21, marking its strongest daily close in nearly three weeks. The flagship cryptocurrency ended the day at $98,330 on Bitstamp, bringing a much-needed wave of relief to traders who had endured weeks of low volatility.

Bitcoin Sees Its Best Daily Close in Weeks

Despite trading within a relatively narrow range, Bitcoin’s recent price action suggests growing bullish momentum , with investors eyeing a potential breakout. Analysts believe a decisive move above $100,000 could trigger a fresh rally, but key resistance levels remain in play.

Macroeconomic data from the United States played a role in supporting Bitcoin’s recovery. Fresh jobless claims exceeded expectations, rising to 219,000—4,000 more than the median forecast. This data signals potential weakness in the U.S. labor market, which could influence the Federal Reserve’s approach to monetary policy. However, the CME Group’s FedWatch Tool still suggests that an interest rate cut in March remains highly unlikely.

Key Price Levels to Watch

As traders attempt to navigate Bitcoin’s next move, market analysts are pointing to crucial price levels. Notably, trader Patric H. noted the importance of flipping $100,000 into support for Bitcoin to establish a more sustained uptrend. His chart analysis highlighted two descending trendlines that BTC/USD must break to confirm further bullish action.

Meanwhile, trader Roman identified $98,400 as a key pivot point that could unlock a $10,000 rally if surpassed. “Break $98.4K, and my guess is $108K is next,” he wrote on X (formerly Twitter), citing declining trading volume as a potential catalyst for a breakout.

The broader financial markets are also seeing a wave of risk-on sentiment. Bitcoin is mirroring the strength seen in gold and equities, both of which have hit fresh highs this week. The SP 500 and gold have demonstrated an unprecedented 0.81 correlation in 2024, according to The Kobeissi Letter, underscoring the growing connection between crypto and traditional assets.

Gold’s market capitalization has surpassed $20 trillion for the first time, fueling excitement among traditional investors. However, Bitcoin proponents remain unimpressed. Timothy Peterson, a well-known network economist, noted that while gold has delivered strong returns, Bitcoin’s long-term growth potential remains far more compelling.