Bitcoin Hits $111,861 All-Time High on 'Bitcoin Pizza Day'

Bitcoin reached a new all-time high of $111,861 on 'Bitcoin Pizza Day', marking a significant milestone. Despite this surge, the price is experiencing a reduced bearish trend, indicating that investors are highly optimistic about the upcoming price movements. Some fractals suggest that the Bitcoin bull run is just beginning, implying that the price is likely to maintain a healthy upward trend and remain within the discovery phase.

The recent price rise was supported by a significant increase in trading volume, with over 75% rise in the past 24 hours and over 100% in the past couple of days. Despite this surge in bullish momentum, certain technical indicators that were expected to be overheated remain relatively stable, signaling a major price action in the near future.

The funding rate, an indicator of market overheating, shows that while long bets are increasing, they have not reached the peaks seen during previous rallies. This suggests that future market overheating is minimal. Additionally, the short-term capital inflow, calculated by the portion of BTC traded within 1 week to 1 month, is not as rapid as during past peaks, further indicating a stable market environment.

Whales and investors are refraining from profit-taking, which is a significant departure from previous price surges. In March 2024, profit-taking was substantial, leading to a prolonged correction. However, with the current price at new highs, profit-taking is much lower than in November 2024, suggesting that whales and retailers are holding onto their assets, anticipating a massive price action. This behavior is further supported by the increased holdings of Bitcoin in spot ETFs, which have reached an all-time high. The increased holdings by both retail and institutional investors significantly support the overall market uptrend, indicating that the Bitcoin market is still in a healthy upward phase with the potential to maintain a steep ascending trend and mark fresh highs in the coming days.