- Long-term holders begin to sell, shifting from accumulation to distribution, typical of bull market profit-taking phases.
- ETF inflows counteract selling pressure, with over 450,000 BTC added last month, showcasing robust institutional demand.
Bitcoin is currently trading near $98,000, reflecting a sustained positive sentiment among market participants. This assessment comes as Bitcoin approaches the significant $100,000 threshold, with on-chain metrics offering insights into the current bull run market.
Key among the influencing factors is the activity of Bitcoin’s long-term holders (LTHs), who have recently shifted from holding to selling their stakes. Data shows a clear increase in profit-taking activities, evidenced by a decline in LTH net positions, a trend typically observed during market upswings.
Simultaneously, the demand from newly established Bitcoin ETFs is introducing substantial buying pressure. According to recent data, these ETFs have amassed over 450,000 BTC in the past month alone, helping to offset the selling pressure from long-term holders.
This inflow is crucial, particularly noted during periods of increased LTH selling, indicating strong market support from institutional investors.
Technically, Bitcoin’s price is supported by several indicators. It remains well above its 50-day and 200-day moving averages, situated at $74,000 and $65,000 respectively, which act as critical support levels. The proximity to the upper band of the Bollinger Bands suggests increased market volatility with a potential for further price increases.
Moreover, momentum indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) underscore the ongoing bullish sentiment.
The MACD is positioned in bullish territory, with increasing momentum, while the RSI at 81, although indicating potentially overbought conditions, aligns with previous periods where Bitcoin managed sustained rallies despite similar readings.
Bitcoin (BTC) is currently trading at $97,686 USD, reflecting a daily decline of 1.34%. Over the past week, Bitcoin has shown a gain of 7.23%, and its monthly performance remains strong, with an increase of 46.62%.
Year-to-date, BTC has surged by 131.09%, reinforcing its dominance in the cryptocurrency market.
Technically, Bitcoin faces key resistance near $100,000 USD, which, if surpassed, could signal further upside potential, with analysts forecasting targets around $120,000 USD or higher.
On the downside, support levels are evident near $93,000 USD, a critical area to watch in case of pullbacks. Current sentiment is described as “extreme greed,” indicating a potential risk of short-term corrections before further gains.
