There has been a bullish breakout to the $97,900 level, the highest value in two months, and reversing April’s correction to $74,000 causing over 3 million BTC to become profitable again. In a Glassnode report dated 7th May, the market is currently in a decision zone waiting to see whether Bitcoin can sustain itself above the 111-day moving average as well as the Short-Term Holder realized price.
Improving Capital Flows
The rally, however, has taken the realized cap to an all-time high at $889 billion, only 2.1% up from the last 30 days, suggesting that more capital is flowing into the Bitcoin network. Daily profits have exceeded $1 billion implying the market’s ability to absorb profit takers who have bought in recently. It was at the price of $ 96,844 at the time of writing this article which was a 2.64% increase in the last day.
Short-Term Holders Approaching Breakeven
As underwater coins have dropped down to 1.9 million BTC, short-term investors retain 83% of coins at an unrealized loss, most of them bought above $96K. It is no longer a major concern as loss has moved closer to being completely unrealized; what they are now focusing on is to realize selective gains.
ETF Demand Rebounding
Institutional interest is ramping up with US spot Bitcoin ETFs seeing inflows of more than $4.6 billion in two weeks after outflows. Currently, the assets under management in ETFs are equal to 1.171 million BTC, which is 11,000 BTC away from the all-time high, indicating the Institutions accumulating Bitcoin again after some time.
Market Implications
Still, the price volatility in the derivatives markets is cooling down to the lowest level of July 2024. This subdued volatility could in fact be an indication since the market is located in an area containing very tight B-Spline clusters around $94’000-$96’000 that could cause investors to move in response to even small price changes.
