What Fueled Its New High
Leading cryptocurrency Bitcoin is once again in the spotlight after rising to an all-time high of $109,699.
As the $110,000 milestone approaches, Bitcoin’s recent price action is being closely watched by investors. The combination of ongoing market conditions and renewed institutional interest has positioned the crypto king for potentially historic gains.
Bitcoin investors are bullish
There has been a significant shift in market sentiment in recent weeks, particularly through lens Coin Days to Destruction (CDD). There will be a period of rising CDD at the end of 2024, indicating a major Activity among Bitcoins Long-term holders (LTH) cashed out during the rally.
However, CDDs cooled significantly in January, suggesting less selling pressure from these major investors. This trend suggests that most of the profit-taking in LTH has been completed, paving the way for a more stable price trajectory.
Low CDD is often interpreted as a positive sign of Bitcoin’s recovery. It reflects the belief of long-term investors who hold the token instead of selling it on the market. This investor behavior typically builds confidence and supports upward price momentum, providing a favorable backdrop for Bitcoin to rise to $110,000 and above.
Bitcoin’s Macro Momentum Stock markets also gained ground on the back of accumulation activity by small investors, often referred to as “shrimps” and “crabs.” These holders with less than 10 BTC collectively added more than 25,600 BTC, worth approximately $2.71 billion. This surge in accumulation is evidence of growing confidence among retail investors.
The surge in balances suggests broad support for Bitcoin prices. Rising engagement among this demographic reflects long-term bullish sentiment. Their buying activity often stabilizes markets, acts as a buffer during corrections, and amplifies price rallies during bullish phases.
BTC Price Prediction: Towards New Highs
Strong market fundamentals and strong investor sentiment pushed Bitcoin to a recent all-time high of $109,699. If momentum continues, the cryptocurrency could surpass the $110,000 mark, solidifying its status as a high-performing asset in 2025. This milestone is likely to attract more buying interest, reinforcing Bitcoin’s bullish outlook.
To ensure its rise, Bitcoin must be built $105,000 is a strong support level. Currently trading at around $105,562, the cryptocurrency king seems capable of achieving this goal. A successful defense of this support area could push Bitcoin to new highs, unlocking further upside potential.
However, failure to hold the support at $105,000 could lead to a pullback towards $100,000. Such a decline would negate Bitcoin’s recent gains And curb short-term bullish sentiment, increasing the risk of a longer-term consolidation before a new rally.
Disclaimer
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