Although Bitcoin (BTC) has surged more than 20% over the past month – partly due to easing global tensions surrounding a potential US-China tariff war – some investors are beginning to question whether the bulk of the upside is already priced in. However, fresh data suggests that the rally may be far from finished.
Bitcoin Bulls Still In Control
According to a recent CryptoQuant Quicktake post by cryptocurrency investor Crypto Dan, Bitcoin remains firmly in an uptrend despite the notable price increase over the last month. The analyst pointed to the “realized price” as a critical indicator for assessing the market’s direction.
Crypto Dan shared the following chart comparing BTC’s market price to its realized price – a metric that represents the average price at which all coins in circulation were last transacted. Historically, whenever the realized price begins to decline, Bitcoin often sees a sharp correction – shown by the red arrows on the chart.
However, the current scenario looks notably different. As highlighted in the yellow circle on the chart, the realized price continues to rise alongside BTC’s market price. This upward trend suggests that the broader cryptocurrency market is still in bullish territory.
Crypto Dan explained that one of the reasons behind the price surge is the increasing number of market participants that are willing to buy BTC at a higher price. The analyst added:
In particular, institutions like Strategy and others are purchasing large amounts of Bitcoin through vehicles like spot exchange traded-funds (ETFs), causing an influx of capital that continues to drive the realized price higher.
Indeed, institutional adoption of BTC has grown significantly in recent years. On-chain data shows that whales – wallets holding substantial BTC amounts – have ramped up their holdings in response to growing institutional demand.
Adding to this momentum is a resurgence in spot Bitcoin exchange-traded funds (ETF) inflows. For the week ending May 9, these ETFs saw total net inflows of $334.58 million.
Technical Indicators Favor Extended Rally
In addition to the bullish realized price trend, several other metrics suggest BTC may be on track to test or even surpass its previous all-time high (ATH). For example, the Binance Taker Buy-Sell Ratio remains elevated, signaling strong buying pressure.
Moreover, Bitcoin’s funding rate on Binance has stayed positive throughout the recent uptrend – an indication that traders remain confident in further price appreciation. That said, investors should be cautious of overly aggressive long positions, as overheated funding rates can lead to abrupt corrections.
Similarly, renowned crypto analyst Mr. Wall Street recently projected that BTC could climb as high as $200,000 before the end of the current market cycle. At the time of writing, BTC is trading at $103,001 down 1% over the past 24 hours.
Featured Image from Unsplash.com, charts from CryptoQuant and TradingView.com
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