Bitcoin has shattered all previous records by reaching a new all-time high (ATH) of $123,091, prompting former Binance CEO Changpeng Zhao (CZ) to put this milestone into historical perspective by calling it 'just a small part' of what is to come.
CZ reminds followers that after buying Bitcoin in 2014, it took three years to regain the $1,000 level in January 2017, noting that the current excitement about the current high may seem insignificant in the coming years.
Bitcoin ATH Liquidated $1.3 Billion in Short Positions
The latest price surge has liquidated $1.3 billion in short positions in under 60 seconds as Bitcoin surpassed $120,000 and shot straight up to $121,000.
With a market capitalization of $2.39 trillion, Bitcoin has now officially surpassed Amazon and is ranked as the fifth-largest asset in the world by market value.
The cryptocurrency market has gained an additional $1.2 trillion in market capitalization since President Trump paused 'reciprocal tariffs' on April 9, with Bitcoin rising $15,000 since the House passed Trump's 'Beautiful Big Bill' on July 3.
The Kobeissi Letter describes Bitcoin entering a 'crisis mode' as the asset continuously reaches new all-time highs multiple times each day.
This historic rally comes as financial institutions can no longer overlook Bitcoin, as family offices, hedge funds, and conservative funds are seeking to allocate around 1% of assets under management to BTC.
The IBIT Bitcoin ETF has reached a record $76 billion in assets under management in less than 350 days, while the GLD gold ETF took over 15 years to achieve a similar milestone.
Historical Context Supporting the Continuous Bullish Momentum of the Market
The current Bitcoin rally maintains a historical pattern with multiple 30-40% corrections occurring during bull markets, however, the largest correction in this cycle is only 23.48%.
Previous major corrections include a drop from $20,000 to $3,200 in 2017-2018, corresponding to an 84% decrease, and a drop from $69,000 to $15,600 in 2021-2022, corresponding to a 77% correction.
The 2013-2015 bear market saw Bitcoin drop 87% from $1,100 to $152 following the collapse of Mt. Gox, while 2017 experienced four significant corrections, ranging from 29-40% before rising to $20,000.
Recent cycles show that corrections have become less severe, often staying within the range of 20-25% during bull runs.
Historical data shows that Bitcoin often undergoes corrections due to news about regulations, macroeconomic volatility, exchange failures, or profit-taking after rapid increases.
The current largest pullback of the bull market is 23.48%, still within normal parameters compared to previous cycles, which included many 30-40% corrections.
In fact, the Kobeissi Letter noted in its analysis that the S&P 500 measured in Bitcoin has declined 15% year-to-date and has decreased 99.98% since 2012.
Bitcoin's outstanding performance has proven it to be both a growth asset and a hedge against inflation during periods of monetary expansion.
Thus, it can be asserted that there is no wrong time to buy Bitcoin, but there is always a best time, which is right now or after the price corrects.
Technical Analysis Confirms Exponential Growth Pattern
Bitcoin has achieved an unprecedented feat by surpassing a seven-year trendline on the monthly chart, showcasing resistance that has existed at every peak of the bull market since 2018.
This breakthrough is a significant shift, as Bitcoin has entered uncharted territory both technically and fundamentally.
Furthermore, the weekly logarithmic chart shows that Bitcoin continues to adhere to a strong long-term exponential growth curve since 2023.
Bitcoin is currently trading within an ascending channel, expected to reach $200,000 or more by December 2025, with exponential growth as prices rise.
Interestingly, this rally has seen Bitcoin close with the highest daily and weekly candles in history.
The lack of significant wicks indicates that sellers have been unable to push the price down from highs, confirming ongoing buying pressure across multiple timeframes.
The logarithmic scale shows the true exponential growth pattern of Bitcoin, where successive bull markets reach exponential peaks.
The mathematical process remains consistent across multiple cycles, and buying at this time does not pose long-term risks.
Record closing levels on both daily and weekly timeframes often occur during the strongest phases of a bull market.
The coordination across multiple timeframes shows that both short-term and mid-term participants share an optimistic view.
The combination of technical breakthroughs and fundamental catalysts is helping Bitcoin continue to rise towards the target of $150,000 - $200,000 in the coming months.
However, if the unexpected occurs, the correction could be below 30% and create more opportunities to buy at lower prices.
