Bitcoin prices remained in a tight range on May 4th, but ongoing supply and demand dynamics show that they will eventually surge to new highs.
Bitcoin (BTC) was trading at $104,000 on Wednesday. It has increased by almost 40% from the lowest point in April.
Coin continues to see high demand, primarily from institutional investors. SOSOValue data shows that Spot Bitcoin ETF added more than $1.95 billion inflows this year, bringing the total inflow since its inception to $41 billion.
Companies are also accumulating. The strategy spent $1.34 billion last week on acquisition of Bitcoin, bringing its total holdings to nearly $600 billion. Currently, its market capitalization is over $115 billion.
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Semler Scientific currently holds 3,808 Bitcoin worth $3,808 at $387 million, but it also has accumulating tethers. After witnessing the success of the strategy, more companies may continue to buy Bitcoin.
Meanwhile, Bitcoin supply has not grown very fast, with mining difficulty and hashrates reaching record highs. Supply to the exchange has fallen to its lowest level in six years, continuing its trend that began in 2021. These dynamics could help support Bitcoin prices in the long term.
Supply shocking call? pic.twitter.com/jvgthyw1ml
– Coinbureau (@Coinbureau) May 12, 2025
Additionally, analysts upgraded post-ceasefire stock forecasts between the US and China. Goldman Sachs expects the S&P 500 index to rise to 6,500 as it lowers the odds of the recession from 45% to 35%. Such a move could benefit Bitcoin and other altcoins because it correlates with stocks.
Bitcoin price technology analysis
BTC Price Chart | Source: crypto.news
Daily charts show that Bitcoin is gradually forming a cup-and-handle pattern, with a cap of $108,200. The C&H pattern is a common continuation signal in technical analysis.
The depth of this particular pattern is about 33%. Measuring the same distance from the top of the cup suggests that the potential gathering would be $145,000. If BTC prices exceed the cup cap, a bullish outlook is confirmed.
Conversely, a $91,340 drop below the 100-day moving average will invalidate the bullish outlook.
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