Bitcoin retail buying surge by 3.4%, new highs just around the corner?

Bitcoin is brewing a new round of explosion, and the driving force behind it is not the Wall Street big shots, but rather the underestimated small retail investors making a grand return. On-chain data shows that wallets holding less than $10,000 are rapidly becoming active, and the resurgence of retail investors may signal a complete reversal in market direction.

Retail activity is soaring, buying pressure is rapidly accumulating

On-chain analyst Carmelo Aleman pointed out that since April 28, the Bitcoin retail buying indicator has been climbing continuously, growing by 3.4% as of May 13. Although these micro-investors have limited individual power, once they create resonance, they can ignite powerful buying pressure.

As they continue to enter the market, a bullish cycle is forming: the more people buy, the stronger the confidence, and the more the price can hold. This is a typical precursor to the initiation of previous market rallies.

Retail-driven effects may trigger a frenzy across the entire market

Aleman believes that once the Bitcoin rally continues, retail funds are likely to flow into other crypto assets such as DeFi, Staking, futures, and other high-risk, high-reward fields. This will not only boost BTC but may also spark the second wave of the entire crypto market.

He suggests paying attention to key indicators such as on-chain activity, the number of new wallets, and trading volume, as these data points can often capture the eruption of retail enthusiasm in advance.

Risk warning: Don’t overlook potential selling pressure signals

However, the market is not without concerns. Another analyst, EgyHash, warns that the stablecoin ratio on exchanges has risen to 5.3, indicating that there is more Bitcoin than cash in the market, which could lead to a wave of liquidation. A similar phenomenon caused significant pullbacks in January this year.

Additionally, Bitcoin's current price is approaching $104,000, nearing technical highs, so caution regarding short-term profit-taking should not be ignored.

Summary: Bitcoin market is changing dramatically, and retail investors are igniting the fuse

If history repeats itself, the current return of retail investors and the resonance of on-chain data are highly likely to be a prelude to new price highs. But between greed and fear, any hesitation could be ruthlessly swallowed by the market. Is this rally the starting point of an explosion or the final baiting? The market is about to reveal the answer.