Bitcoin trades in record highs
On Sunday, Bitcoin hit a new all-time high above $125,000, amid a convergence of institutional capital, macroeconomic stress, and speculative momentum.
This surge follows a week of robust inflows into United States (US) spot Bitcoin exchange-traded funds (ETFs) totalling $3.24 billion – the second-highest on record – highlighting that much of this move is backed by real money rather than pure hype.
The broader macro environment has also lent support. With a US government shutdown underway and uncertainty around economic data releases, investors are increasingly gravitating to alternative assets perceived as stores of value. In response, Bitcoin is being seen by some as a hedge against dollar debasement and fiscal instability.
Meanwhile, equities have also notched fresh record highs, helping fuel a risk-on sentiment that spills into crypto.
Demand indicators and market dynamics
On-chain signals show that demand is indeed real. Analysts have pointed to strong upward flows, wide Coinbase premiums (indicating US buyers paying a premium), and rising open interest in futures markets, all of which lend momentum to the rally.
That said, the price did retreat slightly after hitting its peak, as profit-taking and short-term volatility made themselves felt.
Looking ahead, much depends on whether the current strength can hold. If ETF flow momentum continues and macro uncertainty lingers, Bitcoin may push further into price-discovery zones above $130,000.
But if sentiment shifts or liquidity tightens, a pullback toward major support levels or consolidation could emerge.
Bitcoin bullish scenario:
Bitcoin is on track for its sixth straight day of gains and would probably have the psychological $130,000 region in sight, were it to rise above Sunday’s $125,713.75 record high.
Minor support can be found around the 11 August high at $122,318.66 and the 17 July high at $121,012.09.
Bitcoin bearish scenario:
Bitcoin has come off Sunday’s record high at $125,713.75 and is now flirting with its previous July record high at $123,181.77.
Were a bearish reversal to be seen and a fall through Saturday’s low at 121,518.91 to occur, the 22 to 28 of July highs at $120,271.13 to $119,836.23 may be retested.
Bitcoin daily candlestick chart
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