Bitcoin's accumulation suggests a potential surge towards $110K, despite retail's capitulation, according to Santiment.
Bitcoin is sailing near the $103,700 mark, eagerly eyeing the $110,000 horizon. But can it breach this key resistance level and sail further? Let's delve into the factors influencing this cryptocurrency's movement.
The Big Fish Buying In
Big players in the crypto world, known as whales and sharks, are making a splash by hoarding more than 83,000 BTC in the last 30 days, as reported by Santiment on May 13th. In contrast, smaller investors seem to be taking profits, offloading 387 BTC from wallets holding less than 0.1 BTC during the same period.
While smaller investors are selling off, large holders remain bullish, indicating an anticipation for further upside and potentially pushing Bitcoin towards the $110,000 mark.
Macro Tailwinds: Fueling the Rally
The recent US-China agreement to slash tariffs for 90 days has injected positivity into the overall market sentiment, causing a Bitcoin rally that briefly reached a weekly high of $104,710 before dipping to about $102,500 at the time of writing.
Institutional Demand: Sailing Strong
Institutional demand remains robust. On May 12th, strategy added $1.34 billion worth of Bitcoin, increasing its total holdings to 568,840 BTC, which represents 2.86% of the current circulating supply. Japanese firm Metaplanet also boosted its reserves with a 1,241 BTC acquisition, now holding 6,796 BTC. Bitcoin spot ETFs have experienced net inflows of $2.03 billion in the past month.
The On-Chain Data Story
Glassnode's on-chain data suggests that while demand from first-time buyers remains strong, momentum buying is slowing, and there's a higher level of profit-taking. However, the lack of follow-through from momentum traders could lead to a temporary consolidation if new inflows slow.
Technicals: Reading the Sky for Trends
Bitcoin is currently trading above its major moving averages, with the 10-day EMA and the 50-day SMA both showing "Buy" signals. Momentum indicators also exhibit a bullish bias, while the RSI, at 68, seems to hint that the rally could face resistance near $105,000 to $106,300.
A decisive break above these levels could propel Bitcoin towards the $110,000 psychological milestone. Conversely, a breakdown below support at $97,600 or $94,000 could lead to a deeper retracement towards $89,800.
In Closing
Bitcoin's journey towards $110,000 is indeed promising, fueled by institutional investment, positive macro trends, and technical factors. However, potential corrections should be considered, making it crucial for investors to stay informed about market conditions.
[1]Macro Trends Crypto[2] Glassnode[3] Coin Bureau (YouTube)
- The recent surge in Bitcoin's price to nearly $104,000 could be influenced by institutional investors, like strategy and Japanese firm Metaplanet, who have been aggressively buying Bitcoin, with strategy adding over $1 billion in the past month alone.
- The whales and sharks in the crypto world are accumulating Bitcoin, holding more than 83,000 BTC in the last 30 days, while smaller investors seem to be taking profits, offloading 387 BTC during the same period, suggesting potential selling pressure.
- On-chain data from Glassnode indicates that while demand from first-time buyers remains strong, momentum buying is slowing down, and there's a higher level of profit-taking. This could potentially lead to a temporary consolidation if new inflows slow.
- Bitcoin's movement above its major moving averages, along with bullish momentum indicators, suggests a continuation of the existing uptrend, and a decisive break above the $105,000 to $106,300 resistance could propel Bitcoin towards the $110,000 mark.
- The recent US-China tariff agreement has contributed positively to the overall market sentiment, leading to a Bitcoin rally and increasing institutional demand for cryptocurrencies.
- The ongoing trend of institutional investors buying Bitcoin, combined with positive macroeconomic conditions, technical factors, and the potential buying power of large holders, paints a bullish picture for Bitcoin's pursuit of the $110,000 mark, but potential corrections should also be considered by investors.
