Key takeaways:
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Bitcoin’s worth consolidates under its all-time excessive of almost $112,000.
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Whale accumulation, robust ETF inflows, and different components recommend BTC is on observe to $120,000.
Bitcoin (BTC) exhibits a number of onchain and technical alerts that there’s nonetheless extra upside for BTC.
Bitcoin whales accumulate extra BTC
Massive Bitcoin buyers have been including to their holdings in anticipation of worth will increase sooner or later. Knowledge from market intelligence agency CryptoQuant exhibits that the proportion of wallets holding between 1,000 and 10,000 BTC has elevated sharply since Could 6, accompanying a 16% worth enhance over the identical interval.
This can be a “signal of rising investor confidence,” stated CryptoQuant in a Could 29 put up on X, including:
“It’s traditionally linked to increased costs.”
Ochain information supplier Santiment additionally highlighted that aggressive accumulation is going on amongst wallets holding between 100 and 1,000 BTC.
Up to now 6 weeks, this group has added greater than 337 wallets, collectively accumulating greater than 122,330 BTC, price roughly $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 habits of whales holding between 100 to 1,000 $BTC.”
Further information from Glassnode information exhibits the Bitcoin Accumulation Pattern Rating (ATS) at 1, which signifies intense accumulation by massive buyers.
Total, it is a optimistic signal as continued accumulation alerts bullish sentiment amongst this cohort of buyers.
Robust spot Bitcoin ETF inflows
US-based spot Bitcoin exchange-traded funds (ETFs) proceed to see huge capital inflows, with information from SoSoValue displaying 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 strain that originated in late April, and stays robust at present,” stated blockchain analytics agency Glassnode in its newest Week Onchain report, including:
“This huge and sustained buy-side strain from each retail and institutional buyers suggests a continued confidence within the asset, and has been a significant tailwind for the market, supporting all earlier ATH breaks since they went stay in 2024.”
That is additionally mirrored throughout all different Bitcoin merchandise, with CoinShares mentioning that flows into BTC funding funds totaled $2.97 billion in internet inflows in the course of the week ending Could 23.
Investor sentiment stays optimistic
Social media circles have sustained optimistic sentiment round Bitcoin and crypto property. The Crypto Worry and Greed Index, a barometer of investor sentiment, stands at a notable rating of 74, hinting at prevailing “greed” available in the market.
Notably, this index is above 50 after staying under the midlevel between February and April. Sustaining this index within the “greed” zone since Could 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 prior to now and could possibly be an indicator of an upcoming bull run. Curiously, the index is considerably decrease than 82 in March 2024 and 94 in December 2024, marking the native tops.
This implies that the Crypto Worry and Inexperienced Index might nonetheless rise into the “excessive greed” zone past 85, presumably pushing Bitcoin worth towards new highs.
Associated: Bitcoin worth will attain $130K and even $1.5M, prime bulls say
Bitcoin’s OI stays excessive post-ATHs
Open curiosity (OI) for Bitcoin futures contracts has seen marked development for the reason that sub-$74,000 native low in April, increasing to a report excessive of $80.5 billion on Could 23 from $50.8 billion on April 8, based on 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 enlargement of choices open curiosity displays a maturing investor base which is more and more using choice contracts to execute extra subtle methods to fine-tune their threat 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 information 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 is going to strain 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 enlargement earlier than the unrealized revenue held by buyers reaches an excessive stage,” represented by the higher MVRV band round $120,000.
“Because the market strikes right into a section of worth discovery, the $120K stage seems as a key zone of curiosity, with sell-side strain anticipated to speed up in and round this zone.”
As Cointelegraph reported, Bitcoin is predicted 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 threat, and readers ought to conduct their very own analysis when making a choice.
