Bitcoin (BTC) has gone up by 8.3% in the past 7 days and has made a new all-time high at $118,856 according to data from CoinMarketCap.
Net inflows to BTC-linked exchange-traded funds (ETFs) came close to their record level upon hitting $1.18 billion on Thursday while ETH spot ETFs brought in $383.1 million as well.
Bitcoin ETF Net Inflows – Source: Farside Investors
Both tokens have hit key price milestones as ETH rose above $3,000 for the first time since January this year. Meanwhile, Bitcoin has broken its ceiling for a third time this year as institutional adoption and retail interest above $100,000 seems to be accelerating.
More and more company treasuries are embracing crypto assets – primarily Bitcoin and Ethereum – to diversify their reserves.
Moreover, a pro-crypto administration that includes a Trump-appointed new head at the U.S. Securities and Exchange Commission (SEC) supports a bullish outlook for the entire industry and could help accelerate adoption over the next few years.
Surprisingly, trading volumes in the past 24 hours for Bitcoin have jumped by 112%. This is a remarkable increase for a $2 trillion asset.
Crypto Liquidations (All Exchanges) – Source: CoinGlass
The strength of the rally is emphasized by liquidation data. More than $1.1 billion worth of short positions have been wiped out of the crypto market in the past 24 hours alone. BTC accounts for more than 60% of that total as the price ripped through the $111,000 barrier and came close to $120,000.
Data from CoinGlass indicates that on July 9, short liquidations hit a 6-month high at $936 million.
Meanwhile, open interest in BTC futures (expressed in BTC) is getting close to its all-time high once again as FOMO has taken over the market.
Looking at the daily chart, an encouraging pattern has emerged that promises significant upside potential ahead for Bitcoin.
BTC/USD Daily Chart (Bitstmap) – Source: TradingView
A bull flag pattern has been confirmed following this strong breakout to a new all-time high. In our latest Bitcoin price prediction, we emphasized that the $110,500 level was a key threshold for market participants.
The price retreated briefly upon hitting that resistance and then broke through to make a new ATH as significant buy-side liquidity lied at those levels. With liquidations rising to a 6-month record, it is evident that the market has pulled off a historical short-squeeze.
Now, bulls have a clear runway to keep pushing the price higher. The most encouraging aspect of this breakout is that bull flags are continuation patterns. This means that this could be a resumption of the significant upward movement we saw from April to May this year that resulted in a 50.5% gain.
If we use the flag’s pole size to estimate how high BTC can go after this breakout, we could set a mid-term target of $163,000 for the top crypto.
A retest of the $110,500 level would be expected shortly to give late buyers a chance to enter the rally and prepare for a much more pronounced next leg up.
The Relative Strength Index (RSI) has hit overbought levels in this daily time frame, which favors a bullish outlook in the long term as it indicates that the uptrend has gained significant strength.
A pullback to $110,000 would provide a decent entry with the expectation that BTC will hit much higher levels during what remains of the year.
Alejandro Arrieche specializes in drafting news articles that incorporate technical analysis for traders and possesses in-depth knowledge of value investing and fundamental analysis.