Bitcoin Price Retreat from $108K Signals Buying Opportunity Amid Institutional Support

Bitcoin (BTC) retreated from a high of $108,250, trading at $107,446.08 as of 4 p.m. ET Wednesday, with a 24-hour gain of 0.17%, according to real-time market data. This pullback occurred despite strong bullish catalysts, including a directive from Bill Pulte, director of the U.S. Federal Housing Finance Agency (FHFA), who announced on social media platform X that mortgage giants Fannie Mae and Freddie Mac should incorporate cryptocurrency holdings into their lending criteria. This move, combined with the Federal Reserve's plan to overhaul bank capital requirements, could enhance fiat liquidity and risk asset appeal, fueling crypto adoption. The dollar index (DXY) fell 0.56% to 97.14, supporting risk-on sentiment, while traditional markets like the Nasdaq Composite rose 0.31% to 19,973.55, highlighting cross-market correlations that benefit BTC.

Institutional inflows remain robust, with spot Bitcoin ETFs recording a net inflow of $548 million, marking 12 consecutive days of positive flows as per Farside Investors. Total BTC holdings across these ETFs now stand at approximately 1.23 million BTC. Corporate adoption accelerated, with Metaplanet purchasing an additional 1,234 BTC for $133 million, bringing its total to 12,345 BTC at an average price of $98,303. Meanwhile, Bit Digital, listed on Nasdaq, shifted its strategy to focus solely on Ethereum (ETH) staking, signaling confidence in ETH's growth. The broader crypto market capitalization reached $3.31 trillion, nearing a volatility threshold; FxPro analyst Alex Kuptsikevich noted that levels above $3.40 trillion could trigger increased selling pressure, with the Fear and Greed Index at 74, indicating near-extreme greed. ETH traded at $2,473.17, up 1.41% in 24 hours, supported by spot ETH ETF inflows of $60.4 million and cumulative flows of $4.14 billion.

Technical Analysis and Altcoin Movements Highlight Trading Opportunities

Technical indicators suggest potential upside, with the BTC-BCH pair on Binance showing a bullish golden cross formation as the 50-day simple moving average (SMA) approaches crossing above the 200-day SMA. Bitcoin dominance dipped slightly to 65.65%, while the ETH/BTC ratio rose 1.95% to 0.02297, indicating rotational interest into altcoins. Solana (SOL) surged 2.598% to $146.13 with a 24-hour high of $147.48, while Cardano (ADA) gained 1.293% to $0.5561, reflecting increased DeFi activity. On-chain metrics, such as Bitcoin's hashrate at 803 EH/s and hashprice at $54.23, underscore network strength. Derivatives data shows CME BTC futures open interest at a four-week high of 159,850 BTC, with a flat basis below 10%, signaling cautious hedging; meanwhile, altcoins like PEPE saw open interest spikes, up 2.079% to $0.00000933, hinting at speculative plays.

Traders should monitor key support and resistance levels, with BTC's 24-hour low at $106,414.03 and high at $107,590.61, suggesting immediate support near $106,400 and resistance at $108,250. Upcoming macro events, such as U.S. durable goods orders data on June 26 at 8:30 a.m. ET (estimated at 8.5% MoM vs. previous -6.3%) and core PCE inflation on June 27 (estimated at 0.1% MoM), could influence Fed rate cut expectations, potentially weakening the dollar further. Token unlocks, like Optimism (OP) releasing 1.79% of its supply worth $16.82 million on June 30, may create short-term volatility. Bulls can capitalize on dips by targeting BTC breakouts above $110,000, supported by sustained ETF inflows and institutional demand, while altcoins like SEI, up 50% weekly, offer rotational opportunities amid rising DeFi traction.