6 signs predicting $140K as Bitcoin's next price top

1 month ago

Key takeaways:

Bitcoin’s terms is retracing, but beardown ETF inflows, precocious web enactment and whale accumulation suggest BTC is connected way to $140,000.
Spot Bitcoin ETFs saw $2.9 cardinal successful nett inflows successful 2 weeks, mirroring past rallies.
Declining speech balances and a rising transaction measurement Z-score suggest expanding wide demand.

Bitcoin (BTC) terms was down 1.4% implicit the past 24 hours. It traded 6% beneath its all-time precocious of $109,000, reached connected Jan. 20. Nevertheless, respective fundamental, onchain and method metrics suggest that Bitcoin’s upside is not over.

Spot Bitcoin ETF inflows reflector past BTC rallies

Bitcoin’s latest recovery was accompanied by beardown capitalist appetite for spot Bitcoin exchange-traded funds (ETFs), which recorded $2.9 cardinal successful nett inflows implicit the past 2 weeks.

The illustration beneath shows that aft the launch of the US-based spot Bitcoin ETFs successful January 2024, these concern products saw nett inflows of astir $8.5 cardinal betwixt Feb. 13, 2024, and March 13, 2024, peaking astatine a grounds single-day inflow of $1.045 cardinal connected March 12, 2024.

Similarly, betwixt Nov. 6, 2024, and Dec. 16, 2024, cumulative regular inflows deed $5.7 billion, aligning with Bitcoin’s 60% rally from $67,000 to $108,000 implicit the aforesaid period.

If ETF inflows continue, Bitcoin is apt to resume its uptrend toward caller all-time highs.

Bitcoin marketplace volatility index: risk-on

Increased inflows into spot Bitcoin ETFs awesome precocious risk-on sentiment, arsenic evidenced by a driblet successful the CBOE Volatility Index (VIX), which measures 30-day marketplace volatility expectations.

Bitcoin web economist Timothy Peterson highlighted that the VIX scale has dropped substantially to 18 from 55 implicit the past 25 trading days.

A VIX people beneath 18 implied a “risk-on” environment, favoring assets similar Bitcoin.

The expert said:

“This volition beryllium a 'risk on' situation for the foreseeable future.”

Peterson’s model, which has a 95% tracking accuracy, predicted a $135,000 target wrong the adjacent 100 days if the VIX remains low.

Strong Bitcoin accumulation continues

Reinforcing the risk-on sentiment are Bitcoin whales, who person been expanding their holdings adjacent arsenic the terms rallied. Glassnode information shows the Bitcoin Accumulation Trend Score (ATS) astatine 1 (see illustration below), which signifies aggravated accumulation by ample investors

According to Glassnode, the spike successful inclination people indicates a modulation from organisation to accumulation crossed astir each cohorts. This displacement mirrors a akin accumulation signifier observed successful October 2024, which preceded Bitcoin’s emergence from $67,000 to $108,000, spurred by US President Donald Trump’s predetermination victory.

Cryptocurrencies, Bitcoin Price, Markets, Market Analysis, Bitcoin ETF

Additional information from Santiment reveals that addresses holding betwixt 10 BTC and 10,000 BTC person accumulated 83,105 much BTC successful the past 30 days.

In a May 13 station connected the X societal platform, Santiment said,

“With the assertive accumulation from these ample wallets, it whitethorn beryllium a substance of clip until Bitcoin's coveted $110K all-time precocious level is breached, peculiarly aft the U.S. and China tariff pause.”

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

Declining Bitcoin equilibrium connected exchanges

BTC equilibrium connected exchanges reached a six-year debased of 2.44 cardinal BTC connected May 15. According to the illustration below, much than 110,000 BTC person been moved disconnected exchanges implicit the past 30 days.

Decreasing BTC balances connected exchanges means investors could beryllium withdrawing their tokens into self-custody wallets, indicating a deficiency of volition to merchantability successful anticipation of a aboriginal terms increase.

Increasing web activity

Bitcoin’s imaginable to emergence is supported by accrued web activity, arsenic highlighted by crypto capitalist Ted Boydston successful a May 15 station connected X.

The Bitcoin transaction measurement Z-score measures the quality betwixt the existent transaction measurement and the average. It is often utilized to gauge web enactment and marketplace interest.

The illustration beneath shows the metric has risen sharply from the antagonistic portion and is approaching 1. A rising transaction measurement Z-score, particularly erstwhile it approaches oregon exceeds 1, is historically associated with Bitcoin terms rallies.

“This is simply a bully motion for Bitcoin terms acceleration,” remarked Boydston, adding:

“Bitcoin should beryllium afloat bull erstwhile the Z-score breaches 1.”

BTC rounded bottommost signifier targets $140K

From a method perspective, Bitcoin’s terms has formed a rounded bottommost illustration signifier connected the regular illustration (see below). Bulls are present focused connected pushing the terms supra the neckline of the governing illustration signifier astatine $106,660.

A regular candlestick adjacent supra this level would corroborate a bullish breakout from the rounded bottommost formation, ushering BTC into terms find with the method people acceptable astatine $140,000, oregon a 37% summation from the existent level.

The relative spot index, oregon RSI, is astatine 70, and a bullish transverse from the SMAs suggests that the marketplace conditions inactive favour the upside, which tin apical retired astatine adjacent higher than $140,000.

As Cointelegraph reported, BTC terms had breached retired of a bull emblem successful the play timeframe, projecting a rally to $150,000.

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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