Bitcoin continued to rise in price over the weekend, reaching a high of $98,300 after finding crucial support at $91,405.
The largest crypto by market cap has risen for six consecutive days, coinciding with ongoing demand and supply dynamics.
On the supply side, the mining difficulty and hash rate meters have jumped to their highest level since the semi-final event in April. This move has pushed the coin's inflation rate to 1.11%, well below the US consumer price index figure of 2.7%.
It is also lower than 12%, compared to 2016, while the level of Bitcoin (BTC) in exchanges continued to fall.
On the other hand, demand is increasing as ETF inflows continue. These funds have amassed more than $128 billion in assets, with IBIT BlackRock holding more than $54 billion.
MicroStrategy has also continued its buying spree and now holds over 450 coins. Polymarket users expects the company to have more than 500,000 coins by March.
There are signs that American investors are buying more Bitcoins. In addition to their ETF purchases, data shows that the Coinbase Premium Index has recovered after a significant fall in December.
according to CoinGlassit has moved to minus 0.021, up from minus 0.24 in December.
Other data by CryptoQuant shows that the index has broken above the 14-day simple moving average after 26 days – a positive signal for prices.
The Coinbase Premium Index is an important figure that examines purchases by American investors, including institutions. Coinbase is the most used exchange in the United States, so when it rises, it shows that perhaps the largest pool of capital is accumulating.
Additionally, Bitcoin faces other fundamental triggers ahead, including the inauguration of President-elect Donald Trump and what's to come. FTX release $16 trillion.
There is a chance that some of those who receive this money will invest in Bitcoin and other coins. Also, as crypto.news reported last week, Bitcoin has the MVRV ratio still low – a sign of little value.
Bitcoin price analysis
The graph of the history of BTCGold shows all quotes over the past few days. It has risen in the last six straight days and has always remained above the 50-day moving average.
Bitcoin has also found substantial support at the key support at $91,400, where it has not moved below several times since December.
Therefore, it is likely to continue to rise as bulls target the all-time high of $108,000. A move above that level will signal further gains, perhaps to the 38.2% Fibonacci Retracement level at $114,000.
However, creating a head and shoulders pattern is dangerous. This could lead to a bearish breakout below $91,400.
The analyst's bearish take
Analyst Jacob King of WhaleWire recently issued a strong warning about Bitcoin and the broader crypto market, citing signs of a bear market.
In a post on social media, King pointed out several developments, including MicroStrategy reducing its purchase of Bitcoin, apparently El Salvador. moving away from crypto-oriented policies, and BlackRock selling large BTC holdings.
King criticized MicroStrategy's strategy as a “huge scam” and unsustainable. He also pointed out that Tether (USDT) was halting new minting for over 20 days, coinciding with the coin's recent price stagnation.
Describing the situation as “the calm before the storm,” King warned that the crypto crash could coincide with a broader stock market crash, urging investors to reassess their risks .
At last check on Sunday, BTC was trading at $98,035.
