is currently on a bullish trajectory, recently reaching a of $113,800. This significant increase can be attributed to soaring capital inflows and a notable rise in wallets identified as "accumulators."
Data reveals that these accumulation addresses collectively held 248,000 BTC as of Wednesday, representing a remarkable 71% surge since June. The renewed demand showcases investors' unwavering confidence in bitcoin's potential despite its rising .
market Dynamics and Accumulation Trends
The strong demand from accumulation addresses has not been observed since late December when bitcoin was priced at $97,000. analyst Axel Adler Jr. suggests that meaningful profit-taking may not commence until bitcoin reaches approximately $130,900, based on the Value to Realized Value (MVRV) metric.
Adler Jr. stated, "When the MVRV reaches 2.75, it typically signals the first central inflection point for distribution." This indicates that while some selling may occur at this threshold, a potential rally remains likely as it is still 17% higher than current prices.
Investment Activity Signals Confidence
The recent $4.4 billion increase in bitcoin's realized cap reinforces the idea that the current rally is driven by solid investment activity rather than mere speculation. Glassnode's data confirms that realized cap increases only when coins are exchanged at higher prices, indicating real capital inflows into the .
In light of these trends, Milk Road co-founder Kyle Reidhead set a more ambitious target of $150,000 for , referencing a bullish cup and handle formation observed last month. His confidence is evident in his statement: "See you at $150K."
Future Outlook for bitcoin Investors
While some traders anticipate profit-taking around the $130,900 mark, others remain optimistic about further increases before any significant corrections occur. The ongoing accumulation activity suggests that buyers are gaining control of the despite recent bearish selling pressures.
In conclusion, the current momentum in bitcoin pricing reflects a robust foundational interest among investors in both the CeFi and sectors. As the evolves, close attention should be paid to key metrics such as MVRV and realized cap to gauge future movements.
