Bitcoin on Track for Potential All-Time High Amid Rising Sentiment

Bitcoin seems poised for another all-time high, despite a recent price drop. Significant inflows into spot Bitcoin ETFs totalled $6.4 billion, with steady growth in sentiment reflected by the Bitcoin Fear and Greed Index. Technical indicators also hint at bullish trends, as a bull flag pattern has emerged, suggesting further price increases might be on the horizon. Meanwhile, an upcoming event in Singapore will explore Bitcoin’s role in shaping the future.

Bitcoin, yet again, appears to be gearing up for another all-time high (ATH). Despite a slight retreat in price on Monday, various indicators like technical, fundamental, and on-chain metrics are pointing towards a potential resurgence in a bull run for 2025. Investors seem ready for another rally, especially given recent developments in the market.

Recent data from SoSoValue shows that the inflow of capital into US-based spot Bitcoin ETFs has been significant, amassing $6.4 billion over the last month alone. If we look at the bigger picture, net inflows to these ETFs were steady for a full seven weeks, accumulating $11.4 billion from early February to mid-March 2024. These impressive numbers suggest a growing institutional demand for Bitcoin.

On March 14, Bitcoin hit a jaw-dropping price of $73,800, marking a 73% increase from its previous low. From October 2024 to December, it rose further, from $67,000 to an astonishing $108,000, thanks to cumulative weekly inflows totalling $17.6 billion. It seems investors are getting more optimistic about Bitcoin and the overall cryptocurrency market.

Social media sentiment is reflecting this shift. The Bitcoin Fear and Greed Index sits at a score of 74, which indicates a general feeling of “greed” among investors. Notably, this index has been stable above the 50-mark after a prolonged period below it—a sign suggesting optimism as market participants adjust their outlook on cryptocurrencies.

Interestingly, we’ve seen similar sentiment back in November 2024, right before Bitcoin rocketed to its all-time high of $108,000 in December. If this continues, we might be witnessing the start of another bullish phase for Bitcoin’s price.

CryptoQuant’s data shows something serious: despite Bitcoin recently surpassing the $107,000 mark and 97% of supply being profitable, profit-taking has not surged. Short-term holders (STHs) are benefiting, yet they aren’t cashing out aggressively; their Spent Output Profit Ratio (SOPR) shows a score of 1.01, indicating that while profit exists, everyone is playing it cool for now.

A score above one means the majority are in profit, but given that we’ve had a sideways price action since March, there might still be room for growth before we pump the brakes. If Bitcoin pushes past previous highs, could we even see another parabolic jump considering the SOPR climbs?

The technical indicators are showing a bullish trend as Bitcoin has formed a bull flag pattern on the weekly chart. A bull flag is a bullish signal, suggesting further price increases could follow a solid rally. The consolidation phase resembles a flag that’s appeared post-significant upward movement, which is always promising.

When Bitcoin did cross above the upper trendline of this flag, it confirmed the bullish pattern, peaking at $86,800 on April 22. Analysts are eyeing a target of $180,000, a significant 74% increase from current levels. Moreover, Bitcoin’s weekly relative strength index stands at a healthy 62, suggesting continued bullish momentum.

Most moving averages are indicating buy signals, although some oscillators hint at a neutral stance. Daily trading indicators, especially momentum and MACD levels, suggest a sell signal. Meanwhile, the economic environment also plays a role, as recent downgrades of US debt by Moody’s have set off ripples in the markets, favouring alternatives like Bitcoin.

In another vein, looking forward to June 11, Singapore will be diving into crypto with an event featuring entrepreneur Jeremy Tan, who’s sure to shed light on Bitcoin and its potential future. It’s free to attend, but spots are limited, so attendees will need to confirm.

Moreover, Jeremy Tan has also recently made strides in Singapore’s political landscape, focusing on Bitcoin as a significant part of his campaign. He secured 36% of the vote during the general elections, pointing out the need for Singapore to embrace Bitcoin as a hedge against US dollar instability. There’s certainly a lot happening in the crypto world, and it looks like we’re just getting started!