Analyst: If Bitcoin's price remains above six figures, multiple technical indicators and market data point to a sustained bull market
According to CryptoQuant researcher Axel Adler's recent post, the current price of Bitcoin has surpassed the $100,000 mark, with its realized price reflecting the market cost basis at about $45,000 and an annualized return of up to 36%-85%.
At the same time, the annualized return corresponding to the 30-day simple moving average (SMA) is also between 35%-40%, indicating that the bull market is likely to continue under solid fundamental support.
A report from Glassnode shows that Bitcoin's actual market capitalization increased by nearly $30 billion after April, with a monthly growth rate of about 3%. While this growth indicates that capital inflow is increasing, the pace is still below the strong growth momentum expected in November and December 2024.
Glassnode also observed that as the actual price of long-term holders (LTH) of Bitcoin has risen to $45,340, it indicates that users who purchased Bitcoin at higher prices early on are gradually becoming long-term holders, which has alleviated selling pressure in the market and maintained bullish sentiment.
Meanwhile, CryptoQuant analysts pointed out that retail investors are returning to the Bitcoin market. From April 28 to May 13, the purchase volume of small retail investors with asset balances below $10,000 increased by 3.4%. Their return once again confirms that market confidence is recovering and may form a positive feedback loop, further strengthening bullish sentiment.
Although Bitcoin cooled down after reaching an intraday high of $104,000 on Wednesday, the price still remains above six figures. According to CoinGecko data, BTC has risen 20% over the past month and is currently only 6% away from the historical high of $109,000 in January.
Analyst Tony Severino stated that if Bitcoin's weekly closing price breaks through the range and surpasses the upper Bollinger Band, it indicates that market demand remains strong, and a strong close is expected in the next two weeks (by the end of May).
In summary, analysts believe that market confidence in Bitcoin is recovering, retail investors are returning, and long-term holders are gradually accumulating. The market outlook is optimistic!
Do you agree with the analysts' views? Do you think Bitcoin will break its historical high by the end of May? Leave your thoughts in the comments!