Bitcoin Surges 11% as Retail Investors Drive Bullish Momentum

Bitcoin's recent market performance has been marked by significant gains, with the cryptocurrency climbing 11% last week, reclaiming the $94,000 level. This surge in value has been driven largely by retail investors, particularly those on the Binance platform. Between the 19th and 23rd of April, Binance retail traders purchased over 15,000 BTC, contributing to the upward momentum. This buying spree was confirmed by the Exchange Whale Ratio falling below 0.3, indicating that the rally was primarily driven by retail traders rather than large institutional investors.

The shift in sentiment among retail traders on Binance is notable, as the platform had previously seen a significant inflow of BTC worth $1.41 billion between the 6th and 10th of April. This inflow suggested that investors were preparing for potential sales. However, the subsequent week saw a change in strategy, with investors moving their assets into private wallets for long-term storage or self-custody, signaling a bullish outlook.

This bullish sentiment is not limited to Binance. U.S. and Korean investors have also renewed their interest in Bitcoin, contributing to the asset's bullish structure. In the Korean market, buying activity has been gradually increasing, with a reading of 0.8 above the neutral level of 0, indicating more Bitcoin has been purchased. If this trend continues and the reading rises as high as 3, it could signal continued buying momentum. Similarly, U.S. investors, who had been selling their Bitcoin holdings until 2020, have resumed buying at full force, reaching a new high last seen on the 3rd of February.

Despite the bullish sentiment, there is still selling pressure in the market. Long-term holders remain cautious about Bitcoin’s rally trajectory at its current level, as the Binary Coin Days Destroyed (CDD) continues to drop. When the Binary CDD reading is 1, it indicates that long-term traders are selling their holdings. This selling pressure is likely due to profit-taking, as shown by the Adjusted Spent Output Profit Ratio (ASOPR) staying above 1, confirming sales were happening at a profit. However, profit-taking often serves as healthy rotation, offering fresh fuel for future rallies. If Bitcoin consolidates firmly between $95,000 and $96,000, long-term holders might re-enter aggressively, reigniting momentum.

At press time, Bitcoin traded near the midpoint between $89,000 and the coveted $100,000 zone. While some indicators suggest it could reclaim the higher range, others point to a potential decline. The next stop for Bitcoin, according to some analysts, could be $100,000, but this will depend on whether the asset can overcome the current selling pressure and maintain its upward momentum driven by retail investors.