Bitcoin is trading around $108,700, but underlying flows suggest a potential breakout as both retail investors and institutions increase holdings. Recent Bitwise data and comments from André Dragosch point to aggressive accumulation that could tighten available supply.
Bitwise analysis, highlighted by Dragosch, shows corporate treasuries added about 140,600 BTC in July–August and that 28 new bitcoin treasury companies formed in that period. Institutional demand year-to-date has absorbed roughly 690,000 BTC, while newly mined supply is just over 109,000 BTC — an imbalance of about 6.3x. That gap indicates institutions and treasuries are consuming new supply far faster than it’s produced.
Retail demand appears to be joining the trend. Bitwise charts show accumulation across wallet cohorts — from small addresses to whales — at the highest rate since April, a pattern Dragosch described as investors “stacking relentlessly”. When buying lines up across cohorts, historical precedents have sometimes preceded sustained rallies, though past performance is no guarantee.
Recent price action has been relatively tight: technical data shows BTC trading within a roughly $1,285 range, with resistance near $109,500 and support around $108,350–$108,400. Spikes in volume — including an 8,272 BTC surge — point to institutional participation. Volatility remains elevated after earlier sharp moves, and BTC still sits below key resistance near $110,500.
What to watch: sustained inflows into institutional custody, further corporate treasury announcements, and a decisive break above the $109,500–$110,500 zone on strong volume. Conversely, a failure to hold approximately $108,000 could invite profit-taking and a retest of lower psychological levels.
Risk considerations: growing demand can compress supply and support higher prices, but markets remain sensitive to liquidity, macro headlines and short-term volatility. Position sizing and risk management are important; do not rely solely on historical cycle timing.
Source: CoinDesk. Read the original coverage for full details.