Bitcoin Nears $100,000 with $1 Billion Daily Inflows, Eyes $105,000

Bitcoin is on the rise, nearing $100,000 with over $1 billion daily inflows. Investors remain optimistic and strong sentiment could boost prices further, targeting $105,000. Market dynamics suggest a profit-driven regime yet caution remains amidst potential downturns.

Bitcoin has been on a remarkable upswing in April, consistently edging closer to the pivotal $100,000 milestone. This surge seems to be heavily supported by a notable increase in capital coming into the market, indicating that investor sentiment is heating up. If the current trend holds, we might see Bitcoin reach the $105,000 mark, possibly energizing further upward movements.

Recently, Bitcoin has been attracting over $1 billion in daily net inflows, a clear indicator that demand is back in play. The Net Realized Profit/Loss metric showcases these inflows, revealing that new investors are eagerly soaking up the available supply. While sellers are taking profits, buyers keep stepping in to acquire Bitcoin at the market price.

Though large-scale profit-taking can often signal a bearish trend, in Bitcoin’s case, this occurs once realized profits hit around the $1.5 billion threshold. At this stage, there’s still a significant amount of potential for growth before hitting that ceiling.

Moreover, since October 2023, the Bitcoin market has predominantly favoured profit-taking, with capital continuously flowing in more than it’s flowing out. This persistent influx reinforces the bullish momentum that began in October, showing a firm balance between supply and demand, which is a positive indicator for Bitcoin’s future.

On top of the strong market sentiment, Bitcoin benefits from positive spot ETF flows, which have mostly remained robust throughout the past week, barring a single day on May 6 with $85 million slipping out. This drop was attributed to the uncertainty surrounding the US Federal Reserve’s impending interest rate decisions. Nevertheless, the prevailing trend in spot ETF flows looks encouraging and might lend further support to Bitcoin’s price trajectory.

Currently, Bitcoin’s price sits at around $98,827, just shy of that elusive $100,000 resistance. This marks a high not seen in two months. Should the market maintain its resilience and investor trust remain intact, Bitcoin might just flip $100,000 into a support level, setting itself up for additional gains.

The next significant price target for Bitcoin is at $105,000. Scaling past this level is essential for Bitcoin to sustain its momentum and solidify its position in the six-figure territory. If Bitcoin can manage to hold this level, there’s the potential to rally all the way to $110,000.

However, should the market take a turn for the worse and investor sentiment wavering, breaking through that $100,000 resistance could prove challenging. In a downside scenario, prices might retreat to about $93,625, which could put the current bullish outlook in jeopardy and postpone any chances of recovery.