Key takeaways:
Bitcoin’s price consolidates below its all-time high of nearly $112,000.
Whale accumulation, strong ETF inflows and other factors suggest BTC is on track to $120,000.
Bitcoin (BTC) shows multiple onchain and technical signals that there is still more upside for BTC.
Bitcoin whales accumulate more BTC
Large Bitcoin investors have been adding to their holdings in anticipation of price increases in the future. Data from market intelligence firm CryptoQuant shows that the percentage of wallets holding between 1,000 and 10,000 BTC has increased sharply since May 6, accompanying a 16% price increase over the same period.
This is a “sign of growing investor confidence,” said CryptoQuant in a May 29 post on X, adding:
“It is historically linked to higher prices.”
Ochain data provider Santiment also highlighted that aggressive accumulation is occurring among wallets holding between 100 and 1,000 BTC.
In the past six weeks, this group has added more than 337 wallets, collectively accumulating more than 122,330 BTC, worth about $13.3 billion at current prices.
“Over the past 5 years of Bitcoin’s history, no tier of wallets has been more price-correlated to crypto markets than the behavior of whales holding between 100 to 1,000 $BTC.”
Additional data from Glassnode data shows the Bitcoin Accumulation Trend Score (ATS) at 1, which signifies intense accumulation by large investors.
Overall, this is a positive sign as continued accumulation signals bullish sentiment among this cohort of investors.
Strong spot Bitcoin ETF inflows
US-based spot Bitcoin exchange-traded funds (ETFs) continue to see massive capital inflows, with data from SoSoValue showing these investment products have recorded inflows for 10 consecutive days, totaling $4.2 billion.
Spot Bitcoin ETFs have “seen a sustained period of buy-side pressure that originated in late April, and remains strong today,” said blockchain analytics firm Glassnode in its latest Week Onchain report, adding:
“This large and sustained buy-side pressure from both retail and institutional investors suggests a continued confidence in the asset, and has been a meaningful tailwind for the market, supporting all previous ATH breaks since they went live in 2024.”
This is also reflected across other Bitcoin products, with CoinShares pointing out that flows into BTC investment funds totaled $2.97 billion in net inflows during the week ending May 23.
Investor sentiment stays positive
Social media circles have sustained positive sentiment around Bitcoin and crypto assets. The Crypto Fear & Greed Index, a barometer of investor sentiment, stands at a notable score of 74, hinting at prevailing “greed” in the market.
Notably, this index is above 50 after staying below the midlevel between February and April. Sustaining this index in the “greed” zone since May 6 strongly indicates the positive sentiment the market players have for the wider crypto market.
This pattern in market sentiment has been a precursor to price rallies in the past and could be an indicator of an upcoming bull run. Interestingly, the index is significantly lower than 82 in March 2024 and 94 in December 2024, marking the local tops.
This suggests that the Crypto Fear & Greed Index could still rise into the “extreme greed” zone beyond 85, possibly pushing Bitcoin price toward new highs.
Related: Bitcoin price will reach $130K or even $1.5M, top bulls say
Bitcoin’s OI remains high post-ATHs
Open interest (OI) for Bitcoin futures contracts has seen marked growth since the sub-$74,000 local low in April, expanding to a record high of $80.5 billion on May 23 from $50.8 billion on April 8, according to CoinGlass data.
The IO is currently at $78.4 billion, reflecting a $27.6 billion or a 54% increase over the last 50 days alone, suggesting a buildup of leverage often accompanying bullish environments.
Also backing BTC’s upside is open interest in options contracts that has surged to a new all-time high of $46.2 billion from $20.4 billion, as per data from Glassnode.
Glassnode noted:
“The rapid expansion of options open interest reflects a maturing investor base which is increasingly employing option contracts to execute more sophisticated strategies to fine-tune their risk management and trading positions.”
Historically, when the OI remains high for an extended period, markets tend to enter a euphoric phase. With Bitcoin price still hovering around all-time highs, investor interest continues to build in the derivatives market, positively impacting the price.
Bitcoin price eyes $120K next
Liquidation data shows a thick cluster of orders between the $111,000 and $115,000 levels. These positions often act like a magnet, pulling the price toward them as market makers hunt for liquidity.
If BTC continues climbing, it will pressure short sellers who may be forced to exit, triggering a cascade of buy orders.
Liquidity maps often front-run the price. With such dense activity above the all-time highs, the path of least resistance appears upward in the near term.
Glassnode argued that the BTC price “still has more room for further expansion before the unrealized profit held by investors reaches an extreme level,” represented by the upper MVRV band around $120,000.
“As the market moves into a phase of price discovery, the $120K level appears as a key zone of interest, with sell-side pressure expected to accelerate in and around this zone.”
As Cointelegraph reported, Bitcoin is expected to hit $120,000 in the first half of 2025 en route to $200,000 by year-end.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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