The leading cryptocurrency, Bitcoin (BTC), hit a new record high of $109,350 in early trading Monday. This spike comes despite the broader market declining over the past 24 hours.
Currently, BTC is trading at $107,422. With increased buying pressure, the currency could continue its upward momentum in the short term.
Bitcoin Price Increases Thanks to Optimistic Psychology
The one-day BTC/USD chart shows sustained demand for BTC despite the overall market downturn. For example, BTC’s Balance of Power (BoP) Index is at a bullish level of 0.75, showing a bullish bias towards the leading cryptocurrency.
This momentum index measures the balance between buying and selling pressure, indicating whether bulls (buyers) or bears (sellers) are in control. With BTC, a positive BoP means buyers are dominant, pushing prices up as demand exceeds supply.
Notably, spot BTC inflows increased to a 30-day high, confirming an increase in demand for the coin. According to Coinglass, this totals $316 million at the time of writing.
As spot inflows for an asset increase, more funds will move into the market, often a sign of buying activity and increased interest in the asset. This shows that demand for BTC is increasing, pushing its price higher if supply remains tight.
BTC Price Prediction: Next USD 110,000?
If this buying momentum persists, Bitcoin price could reconquer all-time highs. In this case, the price of the coin could rise to the aspirational level of 110,000 USD and try to surpass it.
On the contrary, if there is an increase in the sale of this coin, the bullish thesis will be canceled. In this case, BTC price could drop below $100K USD to trade at $99,800.