Bitcoin reached an all-time high of $111,861 on the ‘Bitcoin Pizza Day’, creating a memorable moment for investors. Despite this surge, the price is facing some bearish action, indicating that investors are feeling optimistic about future price movements. Some fractals even suggest that the Bitcoin bull run has just begun, leading to predictions of a healthy ascending trend and continued consolidation in the discovery phase.
The recent increase in Bitcoin price was accompanied by a more than 75% rise in trading volume in the past 24 hours, with a staggering over 100% increase in the past few days. Despite this bullish momentum, key technical indicators show that the market is not overheated, signaling that a significant price action may be imminent.
The Bitcoin funding rate remains low, indicating that the market is not overheating. Long bets are increasing, but they have not reached levels seen in previous rallies, suggesting minimal future market overheating.
Short-term capital inflow, which measures the portion of BTC traded within 1 week to 1 month, is not as rapid as during previous peaks, despite the new highs in Bitcoin price. This indicates that the market may not be overheating as much as it has in the past.
Whales and investors are refraining from profit-taking, with short-term holders not cashing out as much as expected. This limited profit-taking suggests that both whales and retailers may be waiting for a significant price action before selling their holdings.
Furthermore, Bitcoin holdings in spot ETFs have reached an all-time high, indicating increased interest from both retail and institutional investors. This rise in holdings supports the overall market uptrend, suggesting that Bitcoin still has the potential to maintain its upward trajectory and reach new highs in the near future.