Bitcoin made headlines on May 22 when it soared to a new all-time high, closing at $111,390 after briefly touching $112,000 during the day. This milestone marked a significant moment for the cryptocurrency market, but analysis suggests that this may not be the peak just yet, as capital continues to flow in at unprecedented levels.
Investor confidence remains strong, with on-chain analyst Axel Adler Jr. reporting that Bitcoin is currently seeing around $1.8 billion in daily net inflows. This level of inflow is comparable to the peak seen in the November 2021 bull market when Bitcoin reached $64,000. Adler’s data-driven insights indicate that investors are maintaining a high level of confidence in the market, even after reaching new all-time highs.
Interestingly, Adler’s data also reveals that capital inflows are strongest during price spikes rather than dips. For example, when Bitcoin was at $73,000, daily inflows reached $3.6 billion, and this figure increased to $4.5 billion per day when Bitcoin was around $92,000. This shift in market behavior suggests a growing institutional conviction among investors, rather than short-term speculation.
The market structure of Bitcoin has also been evolving, with a breakout occurring in early May, leading to a surge in bullish momentum. From May 18 to May 22, Bitcoin saw an 8.3% increase, reaching its new all-time high. However, a brief pullback followed, with Bitcoin dropping approximately 5.8% since May 23 and currently trading at $105,171.54. This retracement is seen as a period of healthy consolidation rather than panic selling, given the overall macroeconomic stability and continued interest in crypto ETFs.
Technical indicators also point to ongoing strength in the market, with the RSI at 53.58 indicating neutral momentum, a Golden Cross signaling a bullish trend, and the ADX showing sustained trend strength. Looking ahead, despite a 5% weekly drop, the 30-day gain of 11.1% highlights the overall positive trend in the market.
In conclusion, the new all-time high for Bitcoin signifies more than just a price milestone—it reflects a market that is evolving and maturing. With historical levels of capital inflows, strong technical signals, and a growing investor base, this may indeed be the most structurally sound bull cycle yet. Stay informed with the latest news and analysis in the crypto world to navigate these exciting times in the market.