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coinpedia 2025-05-22 14:14:53

Top Reasons Why Bitcoin (BTC) Price is Poised to Maintain a Strong Bullish Trend Until the End of the Month

The post Top Reasons Why Bitcoin (BTC) Price is Poised to Maintain a Strong Bullish Trend Until the End of the Month appeared first on Coinpedia Fintech News Bitcoin barged into a new ATH at $111,861 on the ‘Bitcoin Pizza Day’, which turned out to be a memorable one. Despite the rise, the price is facing a lowered bearish action, suggesting the investors have turned highly optimistic over the upcoming price action. Moreover, some of the fractals suggest the BTC bull run has just begun, and hence, the price is believed to maintain a healthy ascending trend and remain consolidated within the discovery phase. The current BTC price rise was backed by an over 75% rise in the trading volume in the past 24 hours but has increased by over 100% in the past couple of days. Despite the massive rise in the bullish momentum, some of the technicals that were supposed to be overheated are pretty cool, signalling towards a major price action fast approaching. Bitcoin Funding Rate Remains Low Funding rate is an indicator of market overheating. The long bets are increasing but have not reached the peaks they marked during the previous rallies. This suggests that the future market overheating is quite negligible. Short-term Capital Inflow Plunges The short-term capital inflow can be calculated by considering the portion of BTC traded within 1 week to 1 month. This also determines the market overheating, as it displays the active supply that was last moved between 1 week and 1 month. Although the BTC price marked new highs, the short-term capital inflow is not as rapid as during the past peaks. Whales & Investors Refrain from Profit-Taking Soon after the price surges, the short-term holders tend to take profit, which has been seen in almost all of the price rises. In March 2024, the profit-taking was significant, which led to a prolonged correction. Now that the price has reached new highs, the profit-taking is much lower than in November 2024, which indicates the whales’ and the retailers’ profit-taking is limited, as they might be waiting for a massive price action. On the other hand, the Bitcoin holdings in spot ETFs have also reached an all-time high. The increased holdings by both retail and institutional investors significantly support the overall market uptrend. This suggests the Bitcoin market is still in a healthy upward phase and hence possesses huge potential to maintain a steep ascending trend to mark fresh highs in the coming days.

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