Reasons for trust
Strict editorial policy focusing on accuracy, relevance and impartiality
Created and carefully reviewed by industry experts
The highest standards for reporting and publishing
Strict editorial policy focusing on accuracy, relevance and impartiality
Morbi Pretium Leo et nisl aliquam Mollis. quisque arcu lorem, super quisque nec, ullamcorper eu odio.
Bitcoin has returned to its upward trajectory, with assets growing at 1.7% in the past 24 hours to $109,505. This marks a 4% increase over the past week, bringing cryptocurrencies to a height of less than 2% higher than the $111,000 all-time high last month.
The move comes after a gentle period of market activity, and has recently achieved gains in a relatively quiet trading environment. Analysts have looked at on-chain metrics to indicate whether current price action is sustainable or close to overheating levels.
In particular, unlike previous gatherings, the latest growth seems to be more measured driven by price spikes and speculative retail demand. This prompts evaluating indicators such as binary coin day (CDD), MVRV ratio and exchange premium index to measure investor behavior and emotions.
Related Readings
Long-term Bitcoin holders and U.S. demand drives tranquility accumulation
According to an analysis published by contributor Avocado Onchain on CryptoQuant’s QuickTake platform, Bitcoin’s current rally is forming under relatively stable conditions.
Analysts point out that the 30-day moving average of binary CDD is an indicator of tracking spending behavior for long-term holders. The decline indicates that these holders have not yet exited the market, indicating continued confidence in the potential for further gains in the assets.
Another notable indicator cited in the analysis is the Coinbase Premium Index, which measures the difference between the price of Bitcoin on the U.S. based Coinbase and other global exchanges. This premium is increasing and close levels were observed during the previous peaks of Bitcoin in March and December 2024.
While increased premiums may be a warning sign of overheating, Avocado noted that South Korea’s premium index is still low, indicating that activities of Asian retailers have become cluttered. This balance suggests that institutional buying pressure, especially from U.S. investors, may drive the recent momentum.
In addition, the market value of MVRV Bitcoin has gradually increased compared with the realized value without any sharp jump. This suggests that the market has not yet entered an extreme greed phase, further strengthening the idea that the current uptrend may have more room to run. Avocado wrote:
All in all, the current indicator is not an expected correction, but rather indicates that Bitcoin may have further room for growth, which may be a time to carefully monitor the potential for continued upwards.
Whale activities and institution inflow signal market confidence
In another post, another crypto contributor named Crypto Dan highlights consistent buying activities from larger market participants. His report noted that Coinbase Premium has been climbing steadily since April 21, indicating an increase in demand from U.S. investors.
This trend, coupled with observations on whale accumulation, shows a strengthening market base despite the lack of high price behavior.
Related Readings
Analysts further pointed out that this pattern is a characteristic of the post-correction recovery phase in Bitcoin’s historical price cycle. So far, the combination of long-term holders’ convictions, institutional demand and gentle retail activity suggests that the rally may be more stable than previous surfing.
Feature images created with DALL-E, TradingView’s chart
