Bitcoin (BTC) price resumed its upward trend this week

Bitcoin (BTC) price resumed its upward trend this week as it crossed the important resistance at $97,000 and reached its highest level since February.

Bitcoin price resumed its upward trend this week as it crossed the important resistance at $97,000 and reached its highest level since February.

Bitcoin (BTC) was trading around $96,500 at last check Saturday. That’s up 30% from the lowest in April.

This article looks at some of the top three reasons it may surge to a new all-time high this year.

Bitcoin supply in exchanges is falling

The first main bullish aspect is that the supply of Bitcoin on exchanges has tumbled to 1.42 million, the lowest level in over six years.

There are now 1.42 million coins on centralized exchanges, its lowest level since November 2018. The supply stood at 3.21 million at its highest level in 2018.

More data shows that the supply of Bitcoin outside of exchanges jumped to 18.43 million.

These numbers mean that investors are not selling their coins, which may lead to a supply squeeze as demand continues rising.

Some of the top Bitcoin holders have no intention to sell any time soon. Michael Saylor’s Strategy, which holds over 2% of the total supply, is continuing to buy. Similarly, top companies like Coinbase (NASDAQ:COIN), Tesla (NASDAQ:TSLA), Galaxy Digital (TSX:GLXY), and Block (NYSE:SQ) have not hinted that they will sell.

Retail and institutional demand is high

The other top reason why the price of Bitcoin will likely keep rising is that retail and institutional demand continues to increase.

One indicator of this is Bitcoin exchange-traded fund inflows. SoSoValue data shows that Bitcoin ETFs have had only four months of outflows since their inception in January last year.

These funds have cumulatively added over $40 billion in assets. Blackrock’s IBIT has $60 billion in assets, while Fidelity’s FBTC and Ark Invest’s ARKB have $20 billion and $19 billion, respectively.

Rising ETF inflows are a sign of institutional demand in the U.S. Further, there are signs that the next phase of demand will come from countries seeking to diversify from the U.S. dollar.

These supply and demand dynamics explain why analysts are highly bullish on Bitcoin. Standard Chartered analysts see the coin jumping to $200,000, while Ark Invest expects it to surge to $2.4 million in 2030.

In addition, Bitcoin’s demand is expected to rise as trade tensions ease.

Bitcoin price technical analysis

Finally, Bitcoin’s price has strong technicals that may push it much higher in the long term. It has remained above the ascending trendline, connecting the lowest swings since August 5 last year.

Bitcoin has surged above the key resistance level at $88,690, the neckline of the double-bottom pattern. It has also surged above the 50-day and 100-day Exponential Moving Averages.

Therefore, there are signs that it is gaining momentum, which will push it above $100,000 first and then to its all-time high.

News data source: kdj.com

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