Bitcoin has reignited bullish momentum, breaking past the $97,000 resistance level to hit its highest point since February. With prices up over 30% from April lows, investors and analysts alike are eyeing a potential move toward a new all-time high. Here are the top three reasons fueling this optimism.
1. Bitcoin Supply on Exchanges Hits Six-Year Low
One of the most compelling bullish signals is the plummeting supply of Bitcoin on centralized exchanges, which has dropped to 1.42 million BTC the lowest level since November 2018. For context, the exchange-held supply peaked at 3.21 million in 2018.
Meanwhile, Bitcoin held outside exchanges has surged to 18.43 million, suggesting that long-term holders are not preparing to sell. This trend indicates rising confidence in future price growth and raises the likelihood of a supply squeeze if demand continues climbing.
Major holders like Strategy (formerly MicroStrategy) which now controls over 2% of Bitcoin’s total supply remain buyers, not sellers. Corporations like Coinbase, Tesla, Block, and Galaxy Digital also show no signs of selling, reinforcing long-term bullish sentiment.
2. Retail and Institutional Demand Continues to Climb
Bitcoin is increasingly being embraced by institutional investors, thanks in large part to the rise of spot Bitcoin ETFs. According to data from SoSoValue, these funds have seen only four months of outflows since their inception in January 2024.
To date, Bitcoin ETFs have attracted over $40 billion in assets:
- BlackRock’s IBIT: $60B
- Fidelity’s FBTC: $20B
- ARK Invest’s ARKB: $19B
These inflows represent strong demand from institutional players. Moreover, countries seeking to diversify away from the U.S. dollar may also turn to Bitcoin as a reserve asset, broadening demand beyond traditional financial markets.
Notably, Standard Chartered projects Bitcoin could hit $200,000, while Ark Invest forecasts a meteoric rise to $2.4 million by 2030.
3. Strong Technical Indicators Signal More Upside
Technically, Bitcoin is flashing clear bullish signals:
- It remains above an ascending trendline dating back to August 2023.
- It has broken out of a double-bottom reversal pattern with a neckline at $88,690.
- It’s trading above both the 50-day and 100-day Exponential Moving Averages (EMAs).
These patterns suggest that Bitcoin is gaining momentum and has room to run. If the current breakout holds, analysts believe BTC will surpass $100,000, with a new all-time high soon to follow.
Between shrinking supply, surging institutional demand, and robust technical patterns, Bitcoin is in a prime position to break new ground. As macroeconomic headwinds fade and interest in digital assets rises globally, Bitcoin’s next all-time high might be closer than most expect.
