Bitcoin price is holding a range, and fresh demand is needed to break higher . Analysts report that the BTC price has been oscillating between $100,000 and $110,000, where it has found support .
For an upward trend to occur, bulls must flip the resistance between $108,000 and $110,000 into new support . One analyst noted that it is “going to take a big effort to push through the 108K-110K level” . The next logical move would be a pullback to take liquidity around the $104,000-$105,000 zone to gain momentum for a move higher .
A pickup in MVRV momentum would suggest that investors hold longer, reducing selling pressure . This, coupled with strong ETF inflows, could trigger Bitcoin's breakout past its current $112,000 peak, potentially reaching levels above $165,000, as predicted by analysts .
Bitcoin price reached a low of $98,200 on Sunday but recovered sharply by 5% over the next two days, closing above its 50-day Exponential Moving Average at $103,352 . If BTC continues its upward trend, it could extend the rally toward its May 22 all-time high at $111,980 . The Relative Strength Index (RSI) on the daily chart reads 54, above its neutral level of 50, indicating bullish momentum .
Institutional demand remains robust, with ProCap BTC LLC buying 3,724 Bitcoin and spot ETF recording $588.55 million in inflows . Additionally, companies like Strategy, Metaplanet, and the Blockchain Group added BTC to their treasury .
According to Sygnum Bank, Bitcoin's shrinking supply may trigger price breakout . Bitcoin's liquid supply has fallen 30% in 18 months as institutional demand and new reserve strategies tighten the market . Bitcoin balances on exchanges have fallen by about 1 million BTC since late 2023 .
Since November 2022, Bitcoin has absorbed over $544 billion in fresh capital inflows, driving its internal network liquidity or realized market cap to an all-time high of $944 billion .
Overall, Bitcoin's price changes because of its supply, the market's demand, competition from other cryptocurrencies, media and news, and regulatory changes .