Bitcoin Nears All-Time High With 5.71% Weekly Gain

Bitcoin (BTC) is currently trading near its previous all-time high (ATH) of $111,970, with its current price standing at $107,666. Over the last week, the largest cryptocurrency has seen a 5.71% increase, sparking discussions on whether Bitcoin will surpass its historical peak with its current momentum. Blockchain data and price trends offer supportive signals for this possibility.

Funding rates, a significant indicator in major exchanges, remain modestly positive, peaking at approximately 0.009%. This level suggests investor optimism without excessive leverage use in the market. The dip in funding rates on June 21, followed by a steady recovery, indicates the market underwent a healthy cooling period, cooling off from overheated long positions. This scenario creates an ideal foundation for a sustainable upward movement.

Noteworthy is the net outflow of BTC from exchanges. Since June 20, the trend has shifted from net BTC inflows to outflows. This trend, often interpreted as a sign of long-term confidence, typically results from investors moving assets to cold storage. Declining exchange inflows underscore reduced short-term selling pressure, further enhancing the likelihood of a sustainable price uptrend.

Bitcoin’s price experienced a 0.29% increase during the day and a 5.71% rise over the past week, reaching a daily high of $108,798. A 32% rise in 24-hour trading volume supports the increase and hints at renewed market participation. The current close proximity, about 3.8%, between the present price and ATH positions Bitcoin to challenge its historical peak. Continuation of this momentum suggests a possible test of the $112,000 level.

A sustained breakout above the recent peak of $108,800 could trigger “breakout” trades and a short squeeze. However, bullish proponents must stay vigilant for potential sell-offs around the significant psychological barrier of $110,000 before the ATH test. This area serves as one of the last substantial hurdles on Bitcoin’s path to revisiting its historical high.

Bitcoin (BTC) remains a dominant choice, comprising 83% of the weekly total inflow, equal to $2.2 billion. Reflecting this bullish sentiment, there was a significant surge in investment in crypto products for the 11th consecutive week. Bitcoin's hashprice has surged to its highest level since early February, rising above $58.5/PH/s following a 7.4% decline in network difficulty—the steepest decline since May 2023. The flagship cryptocurrency has been marginally down over the past 24 hours, trading at around $82,650. BTC continues to face challenges in surpassing the key $111K resistance level, its current all-time high, after several weeks of consolidation. Bitcoin is only up 14% for the year. So it will need a massive year-end rally to reach the much-hyped $200,000 price level. Investors are watching four key signals for Bitcoin's next surge: the money supply, bank reserves, the Fed's balance sheet, and dollar funding costs.