Bitcoin is currently near $108,955 as of press time, supported by a wave of renewed confidence in the cryptocurrency market. This week, a combination of high-level political support and significant corporate buyouts has injected new momentum into BTC, with investors and analysts closely watching for the next major move.
Elon Musk's Endorsement Changes the Narrative
Elon Musk, CEO of Tesla and SpaceX, has become the focus after officially endorsing the U.S. party's support for BTC adoption. In a statement posted on X, Musk described fiat money as hopeless and positioned BTC as the foundation for the party's financial vision ahead of the 2026 midterm elections.
While some critics regard this move as mere rhetoric, Musk's companies have held nearly 19,800 BTC, worth over $2.1 billion. This endorsement has bolstered BTC's reputation as a long-term hedge against inflation and centralized policy risks, helping to shift sentiment in the cryptocurrency space towards optimism.
Corporate Accumulation Boosts Bullish Case
The story of Bitcoin's price has received another boost as Japan's Metaplanet announced the purchase of 2,204 BTC for $237 million, becoming the fifth-largest holder of Bitcoin with a total of 15,555 BTC. This acquisition has propelled Metaplanet ahead of Tesla and CleanSpark, highlighting the growing trend of global companies expanding their Bitcoin treasuries.
Other companies are following suit: France's Blockchain Group has acquired 116 BTC, bringing its total to 1,904 BTC, while the UK-based Smarter Web Company has bought an additional 226 BTC, now holding 1,000 BTC after an impressive profit of 26,242% to date.
Technical Analysis: Important Levels in Play
Technically, Bitcoin's price is currently bouncing off an upward trend line, with the 50 SMA at $108,146 providing dynamic support. Resistance remains at $108,941, and the recent price structure—characterized by small body candles and long wicks—indicates that the market is in a state of indecision.
The relative strength index is at a neutral 49.60, indicating that momentum remains steady but is still searching for direction. A breakout above $108,941 could push Bitcoin's price to $109,727 and potentially $110,561, while losing support could see the price drop to $107,323 or even $106,422.
Institutional Confidence Remains Strong
Although some analysts warn that initial treasury profits are declining, Metaplanet's continuous buying suggests that institutional confidence remains strong. The strategic accumulation activities of companies like Strategy and ProCap, as well as smaller firms, are helping to stabilize Bitcoin's price during periods of macroeconomic volatility.
Supply Volatility: Holders Maintain Stance
According to CrediBULL Crypto, over 80% of the total Bitcoin supply currently in existence is held by long-term investors, often referred to as hodlers. This is a significant milestone, as this percentage has only been higher twice in Bitcoin's 15-year history before major price increases.
As steadfast investors hold the majority of the circulating supply, Bitcoin's price tends to increase sharply at the first signs of new demand. With excess supply now back in the hands of long-term holders, the stage is set for another potential momentum shift.
Trading Setup: What Traders Are Watching
For traders, the current setup provides clear entry and exit points. According to the analyst, buying is recommended above $108,950 on a strong bullish candle, with targets set at $109,727 and $110,561.
Stop-loss levels should be set below $108,100. As long as the trend line holds and the price stays above the 50 SMA, the bulls will maintain control of Bitcoin's price in the short term.
Musk's support and the U.S. party's acceptance of BTC could have far-reaching impacts on cryptocurrency regulation in the U.S. The endorsement from one of the world's most influential entrepreneurs could prompt lawmakers to reconsider how to handle digital assets in future economic strategies.
Conclusion
With institutional buying on the rise, increasing political support, and supply being increasingly locked up by long-term holders, conditions seem ripe for the next major Bitcoin price surge. Many analysts are speculating whether the next momentum could push the asset to the $150,000 mark. As the market awaits the next move, all eyes remain on the key support and resistance levels that will determine Bitcoin's short-term price trajectory.
