Bitcoin Price Forecast: BTC extends upside above $107K as Microstratergy and Riot expand Bitcoin holdings

Bitcoin price today: $107,300

• Bitcoin price trades above $107,300 on Tuesday after reaching a new high of $107,793 the previous day.
• The recent rally in Bitcoin is supported by corporates like Microstragertgy and Riot platforms, which added more BTC to their holdings.
• The technical outlook suggests a rally continuation, projecting a target of $119,500.

Bitcoin (BTC) price trades in green, trading above $107,000 on Tuesday after reaching a record level of $107,793 the previous day. The recent rally in BTC is supported by corporations like MicroStragerty and Riot Platforms, which added more BTC to their holdings. The technical outlook remains bullish, supporting the ongoing rally, and projects a target of $119,500.

Bitcoin’s rise, supported by the corporations’ demand

Bitcoin price reached a new all-time high (ATH) of $107,793 at the start of this week. This rise could be seen as the result of corporations' rising demand for Bitcoin. 

On Monday, Michael Salyor’s MicroStrategy (MSTR) announced that the company had purchased an additional 15,350 BTC for around $1.5 billion at an average price of $100,386 per BTC. MSTR currently holds 439,000 BTC, acquired for $27.1 billion at an average price of $61,725 per Bitcoin. This activity sparked discussion in the crypto community about Bitcoin, which led to a new all-time high of $107,793 that day.  

During the same period, Riot Platforms also announced that it had added 667 BTC at an average price of $101,135 per BTC. Currently, Riot holds 17,429 BTC, valued at $1.8 billion.

Apart from corporate demand, institutional inflows are also supporting Bitcoin’s rise. According to Coinglass, Bitcoin Spot Exchange Traded Funds (ETF) data recorded an inflow of $637.5 million on Monday, continuing its positive flows streak since November 27.

Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass

In the context of rising demand on both corporate and institutional levels, “Bitcoin is entering a phase of escape velocity,” David Morrison, Analyst at Trade Nation, told FXStreet in an exclusive interview.

Morrison explained that a real-time supply shock unfolds as Bitcoin’s fixed supply meets surging demand and pushes prices higher. 

“Many holders remain unwilling to sell at current levels, suggesting further upside potential toward year-end,” said Morrison.

Bitcoin Magazine tweeted on Tuesday that a European Parliament member called for Strategic Bitcoin Reserve and said: “NO to the Digital Euro.” 

Despite strong demand and Bitcoin reaching a new high, traders should remain cautious. Arkham intelligence data shows that defund exchange MT. Gox moved funds worth $172.54 million on Monday. This transfer could later be sent to exchanges like Bitstamp, BitGo and Kraken for repayment to the creditors. If done, this sell-on exchange activity could generate FUD (Fear, Uncertainty, Doubt) among traders, potentially contributing to a decline in Bitcoin’s price.

“We believe on-chain movements related to Mt. Gox will have minimum or no impact on the market.” Bitfinex analysts told FXStreet. 

The analyst explained that Mt. Gox creditors will not add substantial selling pressure because all are early Bitcoin adopters, and most have a view on how to get the best value for their bitcoins.

“In addition, the demand that we are seeing for Bitcoin across all spectrums of investment instruments as well as the ETF inflows continues to increase and is likely to be able to absorb any sell pressure." said the analyst.

Bitcoin Price Forecast: Bulls eye for $119,500 mark

Bitcoin price reached a new high of $107,793 on Monday after rallying over 3% in the previous week. As of Tuesday, it trades above $107,300.

If BTC continues the upward trend, it could extend the rally to test a new ATH of $119,510. This level aligns with the 141.4% Fibonacci extension drawn from the November 4 low of $66,835 to the December 5 high of $104,088.

The Relative Strength Index (RSI) on the daily chart reads 70.93, trading above the overbought level of 70 and points upwards, indicating strong bullish momentum. However, if the RSI retraces below the overbought level, traders should be cautious as the chances of a pullback increase. Additionally, the Moving Average Convergence Divergence (MACD) line on the daily chart shows a bullish crossover on Monday, suggesting an upward momentum.

BTC/USDT daily chart

However, if BTC faces a pullback and closes below $100,000, it could extend the decline to retest the $90,000 support level.

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