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Key Takeaways:
- Bitcoin trades at $118,700, down slightly from last week’s all-time high of $122,838.
- Institutional investment is driving demand, strengthening Bitcoin’s long-term price outlook.
- Analysts are eyeing $130,000 as the next major price milestone, with strong support at $118,950.
Bitcoin (BTC) is trading at $118,700 on Monday, down 3.3% from its all-time high of $122,838 hit last week. Despite the short-term pullback, momentum remains strong as institutional players continue entering the market, signaling the potential for a sustained rally.
Institutional Demand Strengthens Bitcoin’s Momentum
Institutional investors are increasingly allocating capital to Bitcoin, viewing it as a hedge against macroeconomic instability. Large-scale buying pressure is supporting the current price levels, with many financial entities acquiring millions worth of BTC.
According to Alexander Zahnd, interim CEO of Zilliqa, this cycle marks a departure from past rallies. “What stands out this time is the quality of the rally. It’s spot-driven, not built on leverage, and it’s unfolding in a relatively calm market,” he noted, emphasizing the maturity of Bitcoin’s current bullish structure.
Key Price Levels: Can Bitcoin Reach $130,000?
Zahnd believes the next major resistance levels to watch are $123,200 and $126,500. If Bitcoin maintains its current trajectory, $130,000 could be within reach. These levels represent psychological milestones and technical resistance that could either confirm the rally or signal exhaustion.
However, potential downside risks remain. Support is expected at $118,950, with additional safety nets at $115,000 and $112,000, should the market face profit-taking or broader macro-driven pullbacks.
Also Read: UK to Sell £5B in Seized Bitcoin Amid Legal Disputes
Macro Factors Reinforce BTC’s Long-Term Appeal
Zahnd also pointed to macroeconomic instability—rising U.S. debt, persistent inflation, and Federal Reserve uncertainty—as catalysts driving long-term interest in Bitcoin. “This rally feels grounded in that shift,” he said. “Bitcoin is increasingly seen as a long-term store of value.”
As global confidence in fiat currencies wanes, Bitcoin continues to attract new capital from investors seeking refuge in hard assets. The current rally could signal a turning point, with BTC now being seen as a core component in diversified financial portfolios.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
