Bitcoin experienced a prominent 10% rally this week, raising its price to a new all-time high (ATH). This upward momentum shows a bullish outlook for cryptocurrency as investors continue to show strong demand.
Bitcoin is on track again, driven by its popularity and increasing investor confidence, setting a new price record.
Bitcoin investors are bullish
Short term holders (STH) are extremely bullish towards Bitcoin, as evidenced by increased accumulation behavior. Over the past month, the shrimp-to-fish cohort has added over 19,300 BTC to its holdings.
Meanwhile, Bitcoin Miner issues only 13,400 BTC, indicating a significant gap between supply and demand.
The sustained net absorption by STH suggests supply side tightening, along with a decrease in new BTC issuance. This tightening of supply is a key factor in Bitcoin’s price action.
Long-term holders (LTHS) also show strong accumulation behavior, further contributing to tightening supply.
LTH is currently absorbing more bitcoin than miners issues, creating an environment where BTC demand exceeds supply. This uniform behavior across all major investor cohorts indicates that Bitcoin could soon be subject to supply shocks.
This scenario has historically been a bullish signal for Bitcoin. This suggests that a significant portion of the circulating supply is away from exchange, reducing market liquidity. The current trend in net absorption could lead to rising pressure on Bitcoin prices.
BTC prices could form new highs
Bitcoin prices have risen 9.7% in the past week, trading at just $118,712 on the $118,869 ATH. With a strong trend in accumulation and tight supply, Bitcoin is well positioned to continue its bullish run in the coming days.
The growing investor trust and market momentum indicate that BTC can easily overtake current ATH.
Given the limited sustainable supply and demand, Bitcoin is poised to reach the $120,000 mark. This serves as a key bullish trigger for further inflows into the market.
If Bitcoin can secure this level, it will set up a new ass and pave the way for greater profits.
With strong investor accumulation, the chances of a decline are relatively low, but Bitcoin could face challenges on Monday when the stock market is open.
The potential impact of Donald Trump’s recent 30% tariffs on the European Union could create short-term volatility. If Bitcoin responds negatively to market conditions, it could drop to $115,000.
Post-Bitcoin first appeared on Beincrypto at a record high of $120,000 as the supply shock approached.
