Whale inflow has significantly decreased from 5 billion USD to 3 billion USD, while retail participation has increased but remains below historical peaks.
Bitcoin has tested key resistance levels with an increasing stock-to-flow ratio and rising interest from institutions.
Since mid-April, Bitcoin [BTC] has seen significant changes in investor behavior, with whale inflow decreasing from 5 billion USD to 3 billion USD while retail participation increased from 12 billion USD to 15 billion USD.
This divergence between whale and retail activity indicates a shift in market sentiment.
Although large investors have become more cautious, retail inflow continues to rise but remains below previous all-time highs. Despite the increase in retail inflow, it has not yet reached historical levels.
Is market sentiment shifting towards a bearish trend?
According to data from Binance, the BTC Long-Short ratio shows that 56.99% of accounts have short positions, while only 43.01% have long positions.
This indicates a bearish sentiment as many traders expect prices to fall.
The dominance of short positions indicates rising skepticism. As a result, volatility may increase, especially if a short squeeze occurs.
Meanwhile, BTC's social prominence has decreased to 20.6%, with a social volume of 853 at the current time. The decline from previous levels indicates a cooling off in market interest.
Social media engagement plays an important role in driving retail interest. Therefore, if BTC's social prominence continues to decline, it may hinder its ability to maintain momentum.
Source: Santiment
Do institutions still trust BTC?
Interestingly, whales are not completely leaving the market.
Data from large holders' net flow since the end of April shows that large investors continue to accumulate BTC around the 95K USD level.
The 30-day change shows a 101.14% increase in institutional interest. However, the 7-day change is -1586.71% indicating some short-term outflows.
Despite short-term volatility, the positive net flow trend over the past month indicates that institutions still believe in BTC's long-term potential.
Source: IntoTheBlock
Resistance at 108K USD: Can Bitcoin surpass this critical level?
At the current time, BTC is trading at 103,764 USD, up 1.01% for the day. It is currently facing strong resistance near 108K USD. RSI is at 69.81—almost overbought.
Along with RSI, Bollinger Bands (BB) indicate that Bitcoin is approaching the upper band, increasing the likelihood of overbought conditions. Prices are heading towards a breakout, which could push Bitcoin above 110K USD.
However, the combination of RSI and BB indicators suggests that Bitcoin may face price correction if it cannot surpass the upper band.
The current upward trend is strong, but a consolidation phase may occur if resistance holds.
Source: TradingView
Moreover, BTC's Stock-to-Flow ratio has increased by 166.67%, currently at 2.118 million. This indicates increasing scarcity, which could push Bitcoin prices higher.
And, the increasing scarcity reinforces BTC's position as a store of value.
Will caution give way to sustainable price increases?
Bitcoin's market behavior suggests that short-term price action may be constrained, due to resistance levels and cautious sentiment from whales.
However, institutional interest continues to rise, as seen in the net flow of large holders, and the increasing scarcity of BTC supports a bullish long-term outlook.
Despite cooling social sentiment, BTC may still overcome resistance levels if enthusiasm from retail buyers increases.
Therefore, Bitcoin's future depends on whether it can regain momentum and overcome short-term obstacles in its path.
Source: https://tintucbitcoin.com/bitcoin-anh-huong-ca-voi-giam-40-nhom-nao-day-gia/
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