Bitcoin bulls aim for new all-time highs by next week as capital inflows soar

Bitcoin’s recent performance signals strong bullish momentum, fueled by steady investor confidence and significant capital inflows. Glassnode data reveals a $30 billion increase in Bitcoin’s realized cap since April 20th, reaching $900 billion. This growth, although slower than the late 2024 surge, indicates a 3% monthly growth rate in May and reflects sustained market interest.

Further bolstering the positive outlook, Glassnode highlights a positive shift in Bitcoin’s 7-day simple moving average (SMA) of Spot Volume Delta, peaking near $5 billion on May 13th. This surge in net spot buyer demand underscores strong conviction in the market, driven by both institutional and retail investors, rather than solely leveraged trading. The recent price push above the $100,000 psychological resistance further validates this positive sentiment.

Technical analysis suggests a potential 10% price breakout for Bitcoin within the next week. Since bottoming around $74,500 in early April, Bitcoin has exhibited a consistent consolidation and expansion pattern. This pattern, characterized by sideways movement after hitting key levels followed by breakouts to higher ranges, has repeated twice, with a third consolidation currently underway.

The current consolidation phase sees Bitcoin trading between $105,700 and $100,678. Based on the established pattern, a retest of the $100,000-$102,000 level is anticipated before a potential surge above $110,000. However, a drop below $102,000 without a swift recovery would invalidate this bullish prediction. The Relative Strength Index (RSI) complements this price action, indicating overbought conditions during price highs and around 50 during sideways movements.

In summary, Bitcoin’s fundamentals and technical indicators paint a bullish picture, suggesting a strong possibility of further price increases in the near term. However, investors should remain cautious and conduct thorough research before making any investment decisions. This information is for informational purposes only and does not constitute financial advice.