Bitcoin’s Bullish Momentum: Is a 10% Breakout on the Horizon?

Bitcoin (BTC) has been capturing the attention of investors lately, showing strong bullish momentum as fresh capital inflows suggest potential new price highs in the coming week. As of now, Bitcoin’s realized cap has increased by an impressive $30 billion since April 20, reflecting a steady investor confidence and a 3% monthly growth rate as noted by Glassnode. This surge in investor interest has pushed Bitcoin’s current realized cap to a staggering $900 billion.

Recent Capital Inflows and Market Dynamics

In a recent post on X, Glassnode reported that Bitcoin’s realized cap is a significant measure, as it calculates the total value of BTC based on the price at which each coin last moved. This increase in realized cap is indicative of a healthy influx of new capital into the Bitcoin ecosystem.

Despite the slower growth rate compared to the 8% spike witnessed in late 2024—when Bitcoin hit $93,000—this recent activity has been a promising sign for market participants. Adding to the optimism, Glassnode highlighted a major shift in market dynamics: the 7-day simple moving average (SMA) of Bitcoin’s Spot Volume Delta turned positive, peaking at approximately $5 billion on May 13.

This newfound demand for Bitcoin, characterized by aggressive net spot buying, confirms a strong conviction among both institutional and retail investors. It’s worth noting that the current rally is primarily driven by spot market pressures rather than mere leveraged trading.

Will Bitcoin Gain 10% by Next Week?

Bitcoin has shown a consistent pattern of consolidation and expansion since reaching a bottom around $74,500 in early April. Over the past four weeks, a defining trend has emerged: Bitcoin tends to move sideways after hitting key levels before breaking out to a higher range. This has already occurred twice, with a third consolidation currently in motion.

Currently, Bitcoin is consolidating between an upper range of $105,700 and a lower range of $100,678. Each phase has started with a similar setup, forming higher upper and lower price ranges. Typically, the bottom range is tested before Bitcoin pushes upward, making breaking the $100,000-$102,000 range a likely scenario. If the pattern holds, Bitcoin could potentially surge above $110,000. However, a bearish invalidation may occur if it dips below $102,000 without swiftly recovering.

As we look ahead, market analysts are keeping an eye on these key levels. A recent analysis suggests that market volatility indicators even point towards a potential Bitcoin price of $135,000 within the next 100 days.

Investor Sentiment and Future Outlook

The slight growth in Bitcoin’s realized cap compared to 2024 still resonates with a positive market sentiment. Investors are navigating cautiously, keeping their eyes on potential market shifts as Bitcoin appears to be gaining traction against psychological resistance levels.

Bitcoin continues to be an asset worth monitoring closely, especially for those in the financial markets. The confluence of recent capital inflows, positive spot volume dynamics, and established trading patterns may pave the way for more bullish action in the upcoming week.

Conclusion

As of now, the bitcoin market is teeming with optimism, and the potential for a significant price breakout can’t be understated. The combination of increasing realized cap and robust spot market activity presents an exciting opportunity for investors. What lies ahead could redefine Bitcoin’s trajectory and influence the broader cryptocurrency market.

For more insights on Bitcoin and crypto investment strategies, check out our articles on how to navigate market trends and strategies for investing in cryptocurrencies.

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.