The price of Bitcoin has seen a notable increase in recent days, briefly surpassing $104,000 on May 9, before stabilizing at around $103,000, achieving monthly gains of nearly 33%.
This jump raises questions about the possibility of recording a new historical peak in the near future, especially in light of several fundamental factors that support this upward trend, including:
First: Decline in Bitcoin flow to trading platforms
One of the important indicators supporting the recent rise is the decline in net Bitcoin flow to centralized trading platforms, which was evident during most days of last week.
This decline indicates that an increasing number of investors are withdrawing their coins from platforms for self-storage, which is understood as a sign of the intention to hold the currency and reduce the desire to sell, thus reducing supply pressure and vice versa.
Second: Increasing interest from individuals and institutions
Searches for Bitcoin on Google have seen a significant increase recently, reflecting a growth in individual interest in the currency.
This is clearly shown by the Bitcoin network recording about 350,000 new wallets in one day, indicating a broad entry of individual investors driven by the fear of missing out on opportunities.
And although this phenomenon has historically been associated with market peaks, current figures are still below the peak levels that preceded previous historical highs.
Third: Geopolitical factors
Among the external factors that could contribute to supporting Bitcoin is the anticipated meeting between American and Chinese officials.
The two parties are expected to discuss easing trade tensions, and the American president recently hinted at the possibility of reducing tariffs imposed on China.
Such a thaw in trade relations between the world's two largest economies could reduce global uncertainty and enhance risk appetite in the markets, which may benefit digital assets.
Despite the positive signals, some warning indicators are appearing.
Where the fear and greed index has risen to 73, reflecting a prevailing mood of excessive optimism.
Also, the Relative Strength Index (RSI) shows a reading of 75, indicating that the currency may be in overbought territory, which could enhance the chances of a temporary price correction.
In light of this data, the positive outlook for Bitcoin remains, with the need to be aware of the potential for corrective decline in the short term.
