news 
$100K, $103K, $106K… – How is Bitcoin breaching one ATH after the other?
Bitcoin has recently touched new all-time highs, soaring to an astonishing $106,000. This unprecedented surge in value can be attributed to the unwavering institutional demand and a severe supply shortage across OTC desks.
Analysis of on-chain data reveals a stark decline in OTC desk balances, indicating that institutions are aggressively accumulating Bitcoin without any signs of slowing down. The drastic drop in OTC reserves since November has seen an astonishing 40,000 BTC leave these desks, further fueling the cryptocurrency’s meteoric rise.
In parallel, apparent demand has continued to outstrip supply over the past month, leading to a catastrophic supply shortage. The confluence of these factors has created a perfect storm that has allowed Bitcoin to continue breaking one all-time high after another.
The price chart provides irrefutable evidence of this bullish momentum, as it continues to form a clear uptrend characterized by higher highs and higher lows. This trend is further reinforced by the 50-day and 200-day moving averages providing support for the rally.
Furthermore, trading volumes have increased during key upward movements, suggesting that both institutional and retail investors are actively participating in the market. The Relative Strength Index (RSI) currently sits at approximately 70, hinting at a possibility of short-term consolidation, but still indicating an ongoing supply shortage.
It is clear that Bitcoin’s surge to $106,000 has been propelled by an unprecedented surge in institutional demand and supply constraints across OTC desks. This confluence of factors has created a perfect storm that allows the cryptocurrency to continue breaking all-time highs.
Source: ambcrypto.com
