- U.S. Congress moves closer to ending the government shutdown, lifting macro sentiment and Bitcoin’s price outlook.
- Institutional inflows accelerate, with Strive and MicroStrategy adding over $200 million in BTC this week.
- Technical indicators suggest Bitcoin could extend its recovery toward $110,000 if momentum sustains.
Bitcoin climbed back above $106,000 on Tuesday, helped by signs Congress can end the 41-day U.S. government shutdown, firmer bets on Federal Reserve rate cuts, and fresh balance-sheet buying from corporates, traders noted. The latest BTC corporate buys from Strategy and Strive, and a cleaner technical setup above $105,000 rounded out five factors supporting the move, putting the $107,000 to $110,000 band back in focus.
Bitcoin gets policy relief as shutdown deal firms up
Firstly, the rally kicked off as Fox News correspondent, Chad Pergram confirmed the U.S. Congress reached a deal that could end the government shutdown within days. This announcement revived investor confidence across global markets, particularly within digital assets.
Rate-cut bets rise and pull traders back into BTC
Secondly, prediction market bettors quickly priced in increased probability of a Federal Reserve rate cut to 72% in the last 24 hours. The combination of macro relief and dovish policy expectations has driven renewed risk appetite, propelling Bitcoin higher.
Institutional buying drives the latest BTC rebound
Major corporate announcements highlight active institutional demand as a third reason behind the ongoing BTC price recovery. In an official post on X, Strive announced the acquisition of 1,567 BTC worth approximately $162 million at an average entry price of $103,315 per coin. The firm now holds 7,525 BTC in total, strengthening its balance sheet exposure to Bitcoin as a reserve asset.
Adding to the bullish momentum, Strive’s SATA shares, recently listed on Nasdaq following an oversubscribed and upsized IPO, confirmed its upcoming dividend distribution will be classified as Return of Capital (ROC), a structure seen as crypto-friendly among institutional investors.
Meanwhile, Strategy also added a fourth bullish catalyst, as CEO Michael Saylor revealed the firm purchased 487 BTC worth $49.9 million at an average of $102,557 per coin. Strategy holds 641,692 BTC, valued at $47.54 billion, with an average purchase price of $74,079 and an impressive 26.1% BTC yield year-to-date.
Technicals flip back to bullish above $105K with $110K now in sight
Bitcoin Price Forecast: MACD Cross Hints at Leg-higher to $107.5K
Bitcoin price currently trades near $105,048, marking a 62% breakout probability from its November lows. The 1-day chart shows BTC reclaiming the Donchian Channel mid-band near $107,651, which now acts as the first key resistance level. A clean daily close above this level could open a path to retest $116,410, the upper Donchian boundary that capped October’s highs.
From a technical standpoint, the MACD histogram is narrowing, showing lighter red bars that signal waning bearish momentum. The MACD and signal lines (–2,472 and –2,210) are converging rapidly, an early sign of an impending bullish crossover.
Trading volume stands strong at 805.5M, confirming active accumulation as BTC builds higher lows around the $100,000 support zone. The lower Donchian boundary at $98,892 forms a solid structural base, while the upper resistance range between $107,000, $110,000 remains the next key target for bulls.
If Bitcoin closes above $107,651, momentum could accelerate toward $115,000, $116,000 in the coming sessions. Conversely, a rejection below $100,000 could expose the lower boundary, though this scenario appears less likely given the strengthening macro sentiment and rising institutional demand from the likes of Strategy and Strive on Monday.
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