Bitcoin has just broken through 118,000 USD, surpassing an eight-year trend line and entering a "new era."

Bitcoin (BTC) today (11) reached a new high during the Asian afternoon session, touching a peak of 118,426 USD. Bitcoin has risen for four consecutive months and is about to enter a "new era," welcoming more room for growth, as technically, Bitcoin has broken through a key eight-year trend line.

(Source: Trading View)

Joshua Chu, co-chairman of the Hong Kong Web3 Association, stated: "The historic new high for Bitcoin is driven by sustained institutional accumulation—major participants are significantly absorbing the supply and depleting the liquidity on exchanges."

Why has the Bitcoin price entered a "new era"

The monthly chart shows that Bitcoin's price has strongly rebounded, entering a new era. The reason for entering a new era is that the price of Bitcoin has broken through the upward trend line connecting the highest points of December 2017, April 2021, November 2021, and January 2025.

When an asset breaks through a key resistance level, it is always a big deal. In this case, the Bitcoin price has broken through an eight-year trend line, which is significant in itself.

In addition, the chart shows that Bitcoin has formed two rounded bottoms in the uptrend. This indicates that it has formed two cup and handle patterns, which are highly bullish continuation signals.

Bitcoin has remained above the 50-month Exponential Moving Average (EMA), indicating that the bulls are in control. Most importantly, the Average Directional Index (ADX) has surged to 39, the highest level since April 2022.

The ADX indicator exceeding 20 shows that its momentum is strengthening.

The Relative Strength Index (RSI) has also continued to rise, slightly above the overbought level of 72. It started to increase after hitting a low of 40 at the end of 2022.

Therefore, the technical aspect indicates that the Bitcoin price will experience a bullish breakout, with an initial target of 150,000 dollars.

(Source: Trading View)

Bitcoin's Bullish Reasons

The main bullish factor for Bitcoin's price lies in the supply and demand dynamics. On the demand side, data shows that the upward trend in Bitcoin prices is strengthening, with a surge in inflows of spot ETFs. According to data from SoSoValue, these funds have seen an influx of capital over the past few months and have just surpassed the $50 billion mark.

The most notable thing is that the assets of the iShares Bitcoin ETF have surpassed the 80 billion USD mark, and the gap with the SPDR Gold ETF (GLD) is narrowing, which has an asset size of 100 billion USD. The iShares Bitcoin ETF was launched in 2024, while the GLD ETF was launched in 2004.

The demand for Bitcoin also comes from asset management companies such as Strategy, MetaPlanet, Semler Scientific, and Mara Holding. In the coming years, it is likely that more companies will continue to allocate a portion of their funds to Bitcoin.

At the same time, the supply of Bitcoin continues to decrease, with the supply of Bitcoin on exchanges dropping from a peak of 1.5 million coins at the beginning of the year and a peak of 3 million coins in 2021 to 1.2 million coins. As mining difficulty increases before the next halving in two years, the supply of Bitcoin will continue to decline.