All the more so now as Bitcoin looks set to start on a massive bullish rally, possibly gaining up to half its value from current prices. This rosy scenario is heavily dependent on several assumptions stacking up in concert. A textbook bullish continuation pattern developed, network usage is outpacing all other crypto projects, and the global crypto market sentiment turned positive.

On Sunday, 8 June 2025, the cryptocurrency’s price was able to break through the upper trendline at $105,300. This 33% movement was crystal clear bull flag resolution. That ongoing technical pattern indicates a resumption of that earlier uptrend, with analysts targeting an upper price goal of $160,000. Yet, Bitcoin’s volatility is still high, and investors should be ready for extreme price fluctuations.

Technical Indicators Point to Upside Potential

Bitcoin recently established a beautiful bullish continuation pattern signalling to us the high probability of more price appreciation. The bull flag issued its resolution after Bitcoin’s price broke above the bull flag’s upper trendline at $105,300. Should Bitcoin turn down from the current price to produce a daily candlestick close below the flag’s upper trendline at $105,300, it could continue consolidating.

The cryptocurrency’s increased activity signal is the other positive sign, which tends to come before price upswings. This positive signal dovetails with accelerated network expansion, which is evident in the early adoption of 556,830 new wallets on May 29, 2025. This has been the biggest spike of new wallets since last December 2023, a sure sign that the interest and adoption of Bitcoin is on the rise.

Ever since early December 2024, Bitcoin’s circulation has increased to $187 billion today. On June 2nd 2025, the peak of 241,360 coins were in circulation. This surge in activity indicates broader adoption and growing demand for Bitcoin, both of which bolster the case for a significant price rally ahead.

Supply Dynamics and Whale Activity Fuel Optimism

The supply of Bitcoin that can be mined has been slowly decreasing, which has contributed to the bullish sentiment. Mid-tier accumulators, those with account balances between 10 and 10,000 BTC, have netted 79,244 BTC worth of accumulation over a one-week period. This heavy accumulation shows the deep conviction of a large portion of investors in Bitcoin.

To add to the bullish viewpoint, whale inflows have exploded, surging over 145% in the last week. Whale activity has increased enormously. This uptick is a sign that the biggest investors are making bets on future opportunities, and it is feeding bullish sentiment across the market. This reduction in available supply combined with the uptick in whale activity means that conditions are ripe for price appreciation.

Bitcoin’s network activity has exploded over the past week, a clear sign of increased adoption and usage. Such increased activity only serves to support the bullish outlook for Bitcoin, as it hints at a growing demand for the cryptocurrency.

Global Economic Factors Provide Additional Tailwinds

The new US-China trade negotiations have led to the optimism in the global markets, which is having a decidedly bullish effect on Bitcoin. By reducing tariffs, the Biden administration could indirectly weaken the US dollar, making Bitcoin more attractive as a store of value. In times of economic uncertainty or a time when the dollar is weakening, investors search for alternative assets. Bitcoin tends to be their instrument of choice for doing so.

Specifically, the US dollar could weaken as tariffs are gradually reduced. Either way, the change would result in Bitcoin being seen as an even more attractive safe haven asset. As investors look to diversify away from fiat currencies, Bitcoin will see a surge in demand, which will send its price up.