Last week, Bitcoin surpassed the January highs and for the first time in history was above the level of $110,000. It was followed by a pullback, but not beyond the medium-term uptrend. The local correction helped to remove the overheating of technical indicators, and currently the main cryptocurrency is ready to hit the new record highs. For this, BTCUSD needs to reach a new milestone and consolidate above the $112,000 mark.
Analysts, surveyed by Bloomberg, point out the strong divergence in the value dynamics of bitcoin and other risk assets over the past week. While stocks and bonds were affected by the US credit downgrade and Donald Trump's new threats of trade duties, the major cryptocurrency added nearly 4%. Usually, securities move in the same direction as digital assets, but this time the situation is different.
David Schassler from VanEck considers such a discrepancy to be an important factor playing in bitcoin's favor. Investors are wary of increasing their positions in traditional assets amid economic and political uncertainty. At the same time, the high degree of decentralization of the cryptocurrency market gives it additional attractiveness. A comparison of liquidity flows into the largest ETFs for bitcoin and the Nasdaq 100 index is illustrative: the first fund attracted more than $2 billion last week, while the second one recorded an outflow of almost $1 billion.
It is important that not only the retail investors are increasing the share of bitcoin in their portfolios, but also the institutional investors, too. According to a Bitwise report, the number of coins held by companies has reached 800,000, doubling in the last 6 months. If the growth continues at this pace, by the end of 2026, companies will own 2.35 million bitcoins—more than 11% of the total supply of the main cryptocurrency. It could cause a noticeable shortage of BTCUSD on exchanges and a corresponding price increase.
The Relative Strength Index (RSI) on the daily chart of bitcoin has exited the overbought zone, but remains inclined to upward movement. Reaching the level of $112,000 could happen within the next few days.
The following trading strategy may be suggested:
Buy BTCUSD at the current price. Take profit – 112000. Stop loss – 106500.
This content is for informational purposes only and is not intended to be investing advice.
