Bitcoin Surges 8% to $94,000 as Demand Remains Strong

Bitcoin's price has been on a steady upward trajectory over the past week, following a significant surge from $87,000 to $94,000. This gradual increase indicates a stable demand and suggests that traders and short-term holders are not rushing to take profits, which could be a sign of confidence in the current rally. The U.S. state of Arizona's advancement of a Senate bill for a Bitcoin strategic reserve and the lowest selling pressure from miners since May 2024 further support this optimism.

Analysts have noted that Bitcoin's supply in profit has been rising, which is typically a positive indicator. Historically, when the supply in profit exceeds 90%, it marks euphoric phases that are often followed by sizeable pullbacks. However, these pullbacks are not immediate, and the current rise in supply in profit suggests confidence in Bitcoin, potentially fueling its next bullish phase.

Exchange netflows data also supports this view. The 30-day moving average of this metric has been trending lower and has been in negative territory in April, indicating accumulation as Bitcoin moves out of exchanges and into cold storage. The 7-day moving average saw a steep dive in April, suggesting that the recent price pullback was accompanied by heavy accumulation. If the market lacked confidence in the token, the recent gains would have been accompanied by an increase in Bitcoin flows to exchanges as holders prepared to take profits.

At the time of writing, the 30-day MVRV ratio was at its highest since December and January, raising concerns about selling pressure from profit-taking. However, the longer-term MVRV was only just turning positive, with the 180-day and 365-day values nowhere close to the levels from November and December. This indicates that long-term holders are not yet at significant profit levels, suggesting that the rally has more room to grow. Data from the liquidation heatmap showed that the $101,000 and $106,000 levels would be the next price targets.

Bitcoin has recently stabilized around the $95,000 mark, following a significant surge from its mid-April low near $74,000. This upward momentum has been driven by renewed inflows into exchange-traded funds (ETFs) and supportive commentary from the Federal Reserve. The cryptocurrency's daily moving average (MA140) has been gradually rising, currently standing at $87,186, indicating a potential turning point around the $90,000 level. This suggests that Bitcoin may be poised for further gains, with some analysts predicting that a breach of the $96,000 resistance level could accelerate the uptrend towards $100,000.

Despite the potential for further gains, traders are advised to remain cautious. The Relative Strength Index (RSI) indicates a potential reversal, and Bitcoin's recent price action has been characterized by consolidation, with bulls struggling to reclaim higher prices after last week's surge. However, the cryptocurrency appears to have regained the momentum it lost in January, surging back above $94,000 just weeks after brushing a 2025 low of $75,000. This resurgence has been supported by a broader rally in the crypto market, with other major cryptocurrencies also experiencing gains.

The recent price action has also led to a significant increase in liquidations, highlighting the volatility and risk associated with trading in the crypto market. Despite these challenges, the overall sentiment among Bitcoin holders remains positive, with many expecting the cryptocurrency to continue its upward trajectory in the coming months. The metrics revealed that accumulation has been rapid as Bitcoin entered another bullish phase, and the long-term holders are not at significant profit levels yet, based on the MVRV. This rally has more room to grow.