Bitcoin could be poised for further gains in the weeks ahead after clocking a new record high on Sunday, according to analysts.
“Now that we’ve made new ATHs in an impulsive manner, the next leg to $150k+ has begun,” opined crypto analyst ‘CrediBULL Crypto’ on Sunday following Bitcoin’s (BTC) surge to a record high of $125,700.
The analyst said we’ll “blast through” this current level, suggesting that another high could come this week, though didn’t rule out a pullback to the $108,000 to $118,000 zone.
“Dips into that zone of $108 to $118k are a blessing if we get them – and if not, well then enjoy the ride to $150k+”
Long-term crypto trader ‘Crypto Chase’ echoed the sentiment, predicting on Sunday that “a new leg up seems likely.” If Bitcoin is truly strong, “the pullbacks will be minor at best,” they added.
“I feel like BTC is about to see another ATH within hours,” said Hyperliquid whale trader James Wynn, who added, “I believe price discovery mode has started. It’s taken a long time due to price suppression, and gold and stocks are grabbing all the attention.”
Meanwhile, Bitcoin had just printed its highest weekly close in history at $123,543, according to TradingView.
US government shutdown effect
Several factors have been attributed to the 11% surge over the past week, including the US government shutdown, which began on Oct. 1.
“We think that because of the US government shutdown and other monetary pressures, investors could be seeing Bitcoin as a safe haven, giving them another vehicle to diversify away from the US dollar and Treasurys,” Jeff Mei, chief operating officer at the BTSE exchange, told Cointelegraph.
He added that the US dollar is depreciating and is likely to depreciate even more if interest rates decline further, “it only makes sense that investors allocate more capital to other currencies and Bitcoin.”
Related: Bitcoin hits all-time high as USD on track for worst year since 1973: Analyst
Bitcoin’s record high comes at the same time as the US dollar is seeing its worst performance for decades. The US Dollar Index, which measures the US dollar against a basket of currencies, has declined by more than 12% since the beginning of this year.
ATH driven by ETF flows
Meanwhile, venture capital investor Will Clemente said the big Bitcoin move wasn’t driven by digital asset treasuries or derivatives trading, but spot exchange-traded funds, which were “viewing BTC as a rotation from commodities and small caps.”
Spot Bitcoin ETFs in the US saw “ridiculous numbers” last week with $3.2 billion in inflows, resulting in their second-best week since launch, observed Nova Dius President Nate Geraci.
Bullish seasonality
The combination of these influences and bullish seasonality — BTC has gained in 8 out of 12 past fourth quarters and 10 of the past 12 Octobers — could lead to another rally this month.
“It’s incredibly strong that we go from $110K to $125K in a single week,” said crypto YouTuber Michaël van de Poppe on Sunday.
Last week, Capriole Investments founder Charles Edwards predicted that Bitcoin’s breakout above $120,000 would lead to a ‘very quick move’ to $150,000.
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