#BTC Hits New High#  Bitcoin Nears $120,000 All-Time High: Supply Shock Imminent.

Bitcoin experienced a remarkable 10% surge this week, pushing its price to a new all-time high (ATH). This upward momentum bodes well for the cryptocurrency, as investor demand continues to be strong.

With its growing popularity and investor confidence, Bitcoin is on track to break new price records.

Bitcoin Investors Are Overly Optimistic

Short-term investors (STHs) are highly optimistic about Bitcoin, as evidenced by their increasing accumulation behavior.

Meanwhile, Bitcoin miners have only issued 13,400 BTC, indicating a significant gap between demand and supply.

The continued net absorption of STHs and the decline in new BTC issuance indicate a tightening supply. This supply tightening is a critical factor in Bitcoin's price movement.

Long-term investors (LTHs) are also exhibiting strong accumulation behavior, contributing to further supply tightening.

LTHs are currently absorbing more Bitcoin than miners can issue, creating an environment where demand for BTC exceeds supply. This consistent behavior across all major investor groups suggests that Bitcoin may soon experience a supply shock.

This scenario has historically been considered a positive sign for Bitcoin, as it indicates that a significant portion of the circulating supply has been withdrawn from exchanges, reducing market liquidity. The current net absorption trend could exert persistent upward pressure on Bitcoin's price.

BTC Price Could Set a New High

Bitcoin's price rose 9.7% last week to $118,712 and is trading just below its ATH of $118,869. Strong accumulation trends and tightening supply make Bitcoin well-positioned to continue its upward trend in the coming days.

Rising investor confidence and market momentum suggest BTC could easily surpass its current ATH.

Given the sustained demand and limited supply, Bitcoin is likely to reach $120,000. This would be a significant bullish trigger for further market entry.

If Bitcoin can secure this level, it will set a new ATH and pave the way for even larger gains.

While the likelihood of a decline is relatively low due to strong investor accumulation, Bitcoin could face challenges when the stock market opens on Monday.

The potential impact of Donald Trump's recent 30% tariffs on the European Union could create short-term volatility. If Bitcoin reacts negatively to market conditions, a drop to $115,000 is possible.