The Bitcoin price continued its strong surge this week, reaching an all-time high. BTC has jumped in the last four consecutive months, and is on the verge of more gains as it enters a “new era.”
Why Bitcoin Price Has Entered a “New Era”
The monthly chart shows that the Bitcoin price has staged a strong comeback and moved into a new era. This new era is marked by the coin’s movement above the ascending trendline that connects the highest levels in December 2017, April 2021, November 2021, and January 2025.
It is always a big deal when an asset makes a bullish breakout above a key resistance level. In this case, Bitcoin price has broken out above an eight-year trendline, which is a big deal.
Besides, the chart shows that the coin formed two rounded bottoms during its uptrend. That is a sign that it has formed two cup-and-handle patterns, which are highly bullish continuation signs.
Bitcoin has remained above the 50-month Exponential Moving Average (EMA), a sign that bulls are in the driver’s seat. Most importantly, the Average Directional Index (ADX) has risen to 39, the highest level it has reached since April 2022. An ADX figure of over 20 is a sign that it is gaining momentum.
The Relative Strength Index (RSI) has continued to rise and is now slightly above the overbought level at 72. It started rising in late 2022 when it bottomed at 40.
Therefore, technical indicators suggest that the Bitcoin price will have a bullish breakout, with the initial target being $150,000.
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The Bullish Case for Bitcoin
The main bullish case for Bitcoin price is the supply and demand dynamics. From the demand side, data shows that the trend is gaining steam, with spot ETF inflows surging. According to SoSoValue, these funds have experienced inflows over the last few months and have just surpassed the $50 billion milestone.
Most notably, the iShares Bitcoin ETF has surpassed the $80 billion asset mark, narrowing the gap with the SPDR Gold ETF (GLD), which holds $100 billion in assets. IBIT was launched in 2024, while the GLD ETF was started in 2004.
Bitcoin demand is also coming from treasury companies like Strategy, MetaPlanet, Semler Scientific, and Mara Holding. More companies will likely continue moving part of their funds to Bitcoin in the coming years.
Meanwhile, the Bitcoin supply continues to dwindle, with the number of coins held by exchanges falling to 1.2 million from the year-to-date high of 1.5 million and the 2021 high of 3 million. This supply will continue to decline as mining difficulty increases ahead of the next halving, which is approximately two years away.
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