The price of Bitcoin has risen by 25% since its lowest point on April 9, surpassing the $96,500 mark in early May, amid declining market volatility and reduced Bitcoin supply on trading platforms, alongside an increase in liquidity accumulation.
Analyst 'Robert Bridloff' believes that what is happening goes beyond superficial price movements, pointing to underlying bullish signals in mining economics and long-term investor behavior.
According to his analysis, the average cost of producing Bitcoin among mining companies – which is a historical indicator of market bottoms – now shows levels that suggest the beginning of a new bullish wave.
Assets rarely trade in a rational market below their production cost, often leading to miner withdrawals, further supply declines, and then price increases.
'Bridloff' also cited data from the 'Blocker' platform, indicating that the current breakeven level for miners has reached a new low, supporting expectations of further price increases.
Moreover, the movements of long-term investors confirm positive indicators, as they bought about 150,000 additional Bitcoins over the past 30 days, enhancing the likelihood of a supply shock.
In addition, whales purchased approximately $4 billion worth of Bitcoin during the last two weeks of April, alongside renewed inflows into Bitcoin exchange-traded funds, reflecting increased institutional interest.
Regarding the available supply in the market, the volume of Bitcoin on exchanges has dropped to its lowest level in five years, which 'Bridloff' sees as a sign of reduced selling intention among investors, especially in the price range between $80,000 and $100,000.
On the other hand, the favorable macro environment supports this optimistic outlook.
The strong relationship between Bitcoin and global dollar liquidity – especially with central banks trending towards easing their monetary policies – indicates that capital flows towards digital assets could accelerate.
