5 signs that suggest Bitcoin price has 'room for further expansion'

2 weeks ago

Key takeaways:

Bitcoin’s terms consolidates beneath its all-time precocious of astir $112,000.
Whale accumulation, beardown ETF inflows, and different factors suggest BTC is connected way to $120,000.

Bitcoin (BTC) shows aggregate onchain and method signals that determination is inactive much upside for BTC.

Bitcoin whales accumulate much BTC

Large Bitcoin investors person been adding to their holdings successful anticipation of terms increases successful the future. Data from marketplace quality steadfast CryptoQuant shows that the percent of wallets holding betwixt 1,000 and 10,000 BTC has accrued sharply since May 6, accompanying a 16% terms summation implicit the aforesaid period.

This is simply a “sign of increasing capitalist confidence,” said CryptoQuant successful a May 29 station connected X, adding:

“It is historically linked to higher prices.”

Ochain information supplier Santiment besides highlighted that assertive accumulation is occurring among wallets holding betwixt 100 and 1,000 BTC.

In the past 6 weeks, this radical has added much than 337 wallets, collectively accumulating much than 122,330 BTC, worthy astir $13.3 cardinal astatine existent prices.

“Over the past 5 years of Bitcoin's history, nary tier of wallets has been much price-correlated to crypto markets than the behaviour of whales holding betwixt 100 to 1,000 $BTC.”

Additional information from Glassnode information shows the Bitcoin Accumulation Trend Score (ATS) astatine 1, which signifies aggravated accumulation by ample investors.

Overall, this is simply a affirmative motion arsenic continued accumulation signals bullish sentiment among this cohort of investors.

Strong spot Bitcoin ETF inflows

US-based spot Bitcoin exchange-traded funds (ETFs) proceed to spot monolithic superior inflows, with information from SoSoValue showing these concern products person recorded inflows for 10 consecutive days, totaling $4.2 billion.

Spot Bitcoin ETFs person “seen a sustained play of buy-side unit that originated successful precocious April, and remains beardown today,” said blockchain analytics steadfast Glassnode successful its latest Week Onchain report, adding:

“This ample and sustained buy-side unit from some retail and organization investors suggests a continued assurance successful the asset, and has been a meaningful tailwind for the market, supporting each erstwhile ATH breaks since they went unrecorded successful 2024.”

This is besides reflected crossed each different Bitcoin products, with CoinShares pointing out that flows into BTC concern funds totaled $2.97 cardinal successful nett inflows during the week ending May 23.

Investor sentiment stays positive

Social media circles person sustained affirmative sentiment astir Bitcoin and crypto assets. The Crypto Fear and Greed Index, a barometer of capitalist sentiment, stands astatine a notable people of 74, hinting astatine prevailing “greed” successful the market.

Notably, this scale is supra 50 aft staying beneath the midlevel betwixt February and April. Sustaining this scale successful the “greed” portion since May 6 powerfully indicates the affirmative sentiment the marketplace players person for the wider crypto market.

This signifier successful marketplace sentiment has been a precursor to terms rallies successful the past and could beryllium an indicator of an upcoming bull run. Interestingly, the scale is importantly little than 82 successful March 2024 and 94 successful December 2024, marking the section tops.

This suggests that the Crypto Fear and Green Index could inactive emergence into the “extreme greed” portion beyond 85, perchance pushing Bitcoin terms toward caller highs.

Bitcoin’s OI remains precocious post-ATHs

Open interest (OI) for Bitcoin futures contracts has seen marked maturation since the sub-$74,000 section debased successful April, expanding to a grounds high of $80.5 cardinal connected May 23 from $50.8 cardinal connected April 8, according to CoinGlass data.

The IO is presently astatine $78.4 billion, reflecting a $27.6 cardinal oregon a 54% summation implicit the past 50 days alone, suggesting a buildup of leverage often accompanying bullish environments.

Also backing BTC’s upside is unfastened involvement successful options contracts that has surged to a caller all-time precocious of $46.2 cardinal from $20.4 billion, arsenic per information from Glassnode.

Glassnode noted:

“The accelerated enlargement of options unfastened involvement reflects a maturing capitalist basal which is progressively employing enactment contracts to execute much blase strategies to fine-tune their hazard absorption and trading positions.”

Historically, erstwhile the OI remains precocious for an extended period, markets thin to participate a euphoric phase. With Bitcoin terms inactive hovering astir all-time highs, capitalist involvement continues to physique successful the derivatives market, positively impacting the price.

Bitcoin terms eyes $120K next

Liquidation data shows a heavy clump of orders betwixt the $111,000 and $115,000 levels. These positions often enactment similar a magnet, pulling the terms toward them arsenic marketplace makers hunt for liquidity.

If BTC continues climbing, it volition unit abbreviated sellers who whitethorn beryllium forced to exit, triggering a cascade of bargain orders.

Liquidity maps often front-run the price. With specified dense enactment supra the all-time highs, the way of slightest absorption appears upward successful the adjacent term.

Glassnode argued that the BTC terms “still has much country for further enlargement earlier the unrealized nett held by investors reaches an utmost level,” represented by the precocious MVRV set astir $120,000.

“As the marketplace moves into a signifier of terms discovery, the $120K level appears arsenic a cardinal portion of interest, with sell-side unit expected to accelerate successful and astir this zone.”

As Cointelegraph reported, Bitcoin is expected to deed $120,000 successful the archetypal fractional of 2025 en way to $200,000 by year-end.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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