Key takeaways:
-
Bitcoin’s worth consolidates beneath its all-time excessive of practically $112,000.
-
Whale accumulation, robust ETF inflows and different elements counsel BTC is on observe to $120,000.
Bitcoin (BTC) exhibits a number of onchain and technical indicators that there’s nonetheless extra upside for BTC.
Bitcoin whales accumulate extra BTC
Giant Bitcoin traders have been including to their holdings in anticipation of worth will increase sooner or later. Information from market intelligence agency CryptoQuant exhibits that the proportion of wallets holding between 1,000 and 10,000 BTC has elevated sharply since Might 6, accompanying a 16% worth enhance over the identical interval.
This can be a “signal of rising investor confidence,” said CryptoQuant in a Might 29 submit on X, including:
“It’s traditionally linked to larger costs.”
Ochain information supplier Santiment additionally highlighted that aggressive accumulation is happening amongst wallets holding between 100 and 1,000 BTC.
Prior to now six weeks, this group has added greater than 337 wallets, collectively accumulating greater than 122,330 BTC, value about $13.3 billion at present costs.
“Over the previous 5 years of Bitcoin’s historical past, no tier of wallets has been extra price-correlated to crypto markets than the conduct of whales holding between 100 to 1,000 $BTC.”
Extra information from Glassnode information shows the Bitcoin Accumulation Pattern Rating (ATS) at 1, which signifies intense accumulation by giant traders.
General, it is a optimistic signal as continued accumulation indicators bullish sentiment amongst this cohort of traders.
Robust spot Bitcoin ETF inflows
US-based spot Bitcoin exchange-traded funds (ETFs) proceed to see large capital inflows, with information from SoSoValue exhibiting these funding merchandise have recorded inflows for 10 consecutive days, totaling $4.2 billion.
Spot Bitcoin ETFs have “seen a sustained interval of buy-side stress that originated in late April, and stays robust right this moment,” said blockchain analytics agency Glassnode in its newest Week Onchain report, including:
“This huge and sustained buy-side stress from each retail and institutional traders suggests a continued confidence within the asset, and has been a significant tailwind for the market, supporting all earlier ATH breaks since they went live in 2024.”
That is additionally mirrored throughout different Bitcoin merchandise, with CoinShares pointing out that flows into BTC funding funds totaled $2.97 billion in internet inflows through the week ending Might 23.
Investor sentiment stays optimistic
Social media circles have sustained optimistic sentiment round Bitcoin and crypto property. The Crypto Concern & Greed Index, a barometer of investor sentiment, stands at a notable rating of 74, hinting at prevailing “greed” out there.
Notably, this index is above 50 after staying beneath the midlevel between February and April. Sustaining this index within the “greed” zone since Might 6 strongly signifies the optimistic sentiment the market gamers have for the broader crypto market.
This sample in market sentiment has been a precursor to cost rallies previously and could possibly be an indicator of an upcoming bull run. Apparently, the index is considerably decrease than 82 in March 2024 and 94 in December 2024, marking the native tops.
This implies that the Crypto Concern & Greed Index may nonetheless rise into the “excessive greed” zone past 85, presumably pushing Bitcoin worth towards new highs.
Associated: Bitcoin price will reach $130K or even $1.5M, top bulls say
Bitcoin’s OI stays excessive post-ATHs
Open interest (OI) for Bitcoin futures contracts has seen marked development because the sub-$74,000 native low in April, expanding to a record high of $80.5 billion on Might 23 from $50.8 billion on April 8, in line with CoinGlass information.
The IO is at present at $78.4 billion, reflecting a $27.6 billion or a 54% enhance over the past 50 days alone, suggesting a buildup of leverage usually accompanying bullish environments.
Additionally backing BTC’s upside is open curiosity in choices contracts that has surged to a brand new all-time excessive of $46.2 billion from $20.4 billion, as per information from Glassnode.
Glassnode famous:
“The fast growth of choices open curiosity displays a maturing investor base which is more and more using possibility contracts to execute extra refined methods to fine-tune their danger administration and buying and selling positions.”
Traditionally, when the OI stays excessive for an prolonged interval, markets are likely to enter a euphoric section. With Bitcoin worth nonetheless hovering round all-time highs, investor curiosity continues to construct within the derivatives market, positively impacting the value.
Bitcoin worth eyes $120K subsequent
Liquidation data exhibits a thick cluster of orders between the $111,000 and $115,000 ranges. These positions usually act like a magnet, pulling the value towards them as market makers hunt for liquidity.
If BTC continues climbing, it would stress brief sellers who could also be pressured to exit, triggering a cascade of purchase orders.
Liquidity maps usually front-run the value. With such dense exercise above the all-time highs, the trail of least resistance seems upward within the close to time period.
Glassnode argued that the BTC worth “nonetheless has extra room for additional growth earlier than the unrealized revenue held by traders reaches an excessive degree,” represented by the higher MVRV band round $120,000.
“Because the market strikes right into a section of worth discovery, the $120K degree seems as a key zone of curiosity, with sell-side stress anticipated to speed up in and round this zone.”
As Cointelegraph reported, Bitcoin is anticipated to hit $120,000 within the first half of 2025 en path to $200,000 by year-end.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.
