Bitcoin (BTC) continued its upward momentum on Sunday after making a decisive move above the key $100,000 level for the first time in months. This signals that bulls have taken back control of the market, with buyers trying to hold on to the 10% weekly gains.
Analysts suggest that Bitcoin could set a new all-time high, although a short-term price correction also remains possible. The flagship cryptocurrency is about 4.5% below its ATH of $109,588 from January 2025.
BlackRock’s IBIT Bitcoin ETF Records Longest Inflow Streak of the Year, Coinciding With Bull Run
Bitcoin’s rally is driven by solid inflows into BlackRock’s iShares Bitcoin Trust (IBIT) ETF. As per data from Farside Investors, the exchange-traded fund attracted $1.03 billion in inflows last week, registering its 19th consecutive day of inflows – the longest streak so far this year, which began on April 14.
IBIT’s previous longest inflow streak of 2025 occurred between January 15 and 28, around the time US President Donald Trump assumed office. However, the longest inflow streak for the fund was recorded in the 104 days between its launch on January 10 and April 23, 2024, coinciding with Bitcoin registering its all-time high of $73,679 in March as a result of increased demand for BTC-backed ETFs.
BlackRock’s IBIT closed the trading week on Friday by pulling in 356.2 million, while the cryptocurrency was trading in the channel between $83,152 and $103,000.
Vincent Lio, the chief investment officer at Kronos Research, noted that Bitcoin’s price hovering near all-time highs is backed by strong technical momentum, showing that the coin is trading above its 50 and 200-day moving averages. He also pointed out that rising institutional adoption and a favorable 2025 outlook are painting a picture of BTC recording another peak valuation.
Meanwhile, Andre Dragosch, the European head of research at Bitwise, has predicted Bitcoin to hit $1 million per coin by 2029, suggesting that expanding institutional interest will provide the apex crypto the “structural inflows necessary” to topple gold’s market cap of approximately $22 trillion over the next four years.
US-China Trade Deal Could Propel Bitcoin To New ATH
Another catalyst for Bitcoin’s rally is the renewed optimism surrounding trading negotiations between the US and China. Fears of a protracted trade war between the two economic giants, sparked by Trump’s proposed tariffs on Chinese imports, were a major factor that had stopped Bitcoin in its tracks over the past couple of months.
On Sunday, officials from Washington and Beijing met in Switzerland, where both sides reached an important consensus. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are expected to provide more details on the progress made during the discussions with China on Monday.
According to Preston Research analyst Min Jung, the possibility of Bitcoin breaching its previous peak depends on the progression of the trade negotiations, as well as the handling of other rising geopolitical tensions, like the India-Pakistan conflict. He also noted capital rotation in the market, with money beginning to flow from BTC into altcoins, which is a sign of a major bull run in the making.
He added that persistent inflows into spot Bitcoin ETFs and major corporations adopting Bitcoin as a treasury asset remain “critical” to maintaining the flagship crypto’s upward momentum.
Investor activity is overwhelmingly bullish, with more than 30,072 BTC ($3.13 billion) purchased over the past week alone. This surge in accumulation has resulted in the number of Bitcoins available on exchanges dropping to their lowest level since January, with more BTC withdrawn than deposited.
Bitcoin holders are accumulating more coins, fearing missing out on the profits. As it hovers around record highs, long-term investors appear to be improving their positions, betting on a fresh price breakout.
Long-term BTC Holders Taking Profits May Create Selling Pressure
While accumulation figures project strength in the market, the macro trend is painting a mixed picture. The Bitcoin Liveliness indicator, an on-chain metric designed to measure the balance between holding and spending behavior among Bitcoin investors, is on a multi-week high, suggesting that long-term holders are beginning to liquidate their positions.
An increase in Liveliness typically means that dormant Bitcoins are becoming active again, a signal that early adopters are taking profits. This behavior may result in creating new selling pressure in the market, with long-term holders’ decision to offload undermining the overall bullish sentiment created by fresh accumulation.
Bitcoin’s relative strength index (RSI) also indicates that it is in the “overbought” territory, which analysts suggest raises the possibility of some short-term cooling or sideways movement. BTC Markets analyst Rachael Lucas said that a retest and consolidation above the key psychological level of $100,000 would be a “healthy development” and could provide a base for further upside.
BTC’s key psychological resistance is set at $105,000, but technical indicators suggest that actual resistance is $106,265, which has remained its price ceiling since December 2024. The immediate hurdle for Bitcoin is breaching the actual resistance as market dynamics, including increasing selling from long-term holders and conflicting investor sentiment, are making it harder to register a new all-time high.
Should Bitcoin fail to overcome this resistance, then a price correction back to $100,000 remains a strong possibility. Conversely, if it manages to break past and flip the resistance into a support floor, then the bullish momentum could be reignited, propelling it to form a new peak above the current ATH of $109,588. Surpassing the resistance would invalidate the bearish outlook and set Bitcoin on the path to $110,000 per coin.
At press time, Bitcoin (BTC) is trading at $104,327 – up 1.31% in the last 24 hours.