Bitcoin is holding strong above the $107,000 mark as a sharp decline in the US dollar and a historic wave of long-term holding strengthen the case for a fresh rally. Market analysts are pointing to a rare alignment of economic weakness and on-chain resilience that may fuel a breakout beyond $135,000.
According to data from CoinMarketCap, Bitcoin has been steady at over US$100,000 despite the increase in volatility. The Bitcoin price rally has been further boosted by its position as a store of value, as the US Dollar Index has hit a 3-year low in a declining currency environment.
Crypto analyst Lark Davis has expressed the view that the 11 percent decline in the dollar so far this year is a strong indicator of Bitcoin’s bullish growth, given that world liquidity is at an all-time high. Davis emphasized that under such macroeconomic scenarios, Bitcoin is not new to seeing massive price growth.
Also Read: XRP to Overtake Bitcoin? BitBoy’s Bold Claim Sparks Massive Debate
In the meantime, the long-term holders of Bitcoins are becoming increasingly concerned with their grip on supply. On-chain analyst Darkfost disclosed that an increasing percentage of Bitcoin in that $95,000 to 107,000 buck marker has been sitting in the same space for more than six months.
This repeat, which has only been witnessed five times in the history of Bitcoin, is a pointer to conviction on the part of heavy holders.
Instead of selling, investors are holding their coins for longer periods, even near all-time highs, indicating strong accumulation rather than distribution.
Wall Street Optimism and Technical Strength Reinforce Bitcoin Momentum
Besides macroeconomic pressures, investor sentiment has improved, with Wall Street entering a risk-on phase. Both the S&P 500 and Nasdaq futures have reached record highs, with the S&P climbing to 6,145 points. A ceasefire between Israel and Iran and easing trade tensions have contributed to the optimism.
Capital flows are also flowing into risk assets as markets anticipate the Federal Reserve reducing interest rates this July. This change of sentiment is directly benefiting bitcoin, which is usually treated as a high-risk hedge.
Technical signals support bullish strength, as Bitcoin holds the upper Bollinger Band on the weekly chart amid rising volatility. The On-Balance Volume is once again high, at $16.28 million, indicating continued purchases even at the existing prices.
Source: Tradingview
With the dollar’s further decline and the further inflow of liquidity into the system, the bitcoin-limited supply and long-term hold pattern may also become central to the continued upward trend.
Also Read: Expert Sets Realistic Targets For XRP in Coming Months, Says Something Big is Loading
