Bitcoin Price Surges 1.84% to $107,642 as Bullish Sentiment Grows

Bitcoin's recent on-chain metrics indicate a growing bullish sentiment, with the Taker Buy/Sell Ratio hitting 1.1, suggesting that buyers are increasingly dominating the market. This shift is supported by a 1.84% daily price gain to $107,642, reflecting a gradual regain of market confidence among buyers. The bullish momentum is further bolstered by positive spot ETF net flows, which have helped Bitcoin hold onto most of its recent gains despite a slight retreat. The improving sentiment and positive on-chain signals suggest that Bitcoin is poised for a potential bullish breakout in the near future.

CryptoQuant data shows Bitcoin’s Realized Cap for long-term holders has now exceeded $56 billion, a level that reflects increasing conviction. Coins older than 155 days are moving into inactive wallets, suggesting holders aren’t looking to sell into the recent rally. Historically, this type of accumulation signals early stages of long-term bull trends, forming a strong foundation beneath BTC’s price. Moreover, Bitcoin’s 30-day volatility dropped to 21.68%, the lowest in weeks. While low volatility may seem dull, such periods often precede explosive price moves. Combined with strong LTH buying and bullish short-term signals, it may set the stage for an upward breakout.

While Coin Days Destroyed (CDD) rose slightly, up 3.83% to 291.4k, indicating some older coins moved to exchanges, analysts say the shift is minor. Rather than a sell-off, this could reflect normal rebalancing. Overall, bullish metrics continue to outweigh bearish signals. CoinGlass data reveals that over 60% of Binance traders are shorting BTC. With such a crowded short trade, a price move higher could trigger a short squeeze, adding fuel to BTC’s rally.

Bitcoin has shown resilience, pulling back from the edge after a period of heightened volatility. The cryptocurrency's ability to maintain its value amidst macroeconomic uncertainties further supports the bullish outlook. The recent surge in Bitcoin's price, reaching $110,169 over the weekend, underscores the growing confidence in the market. However, it is important to note that while the bullish momentum persists, rising risk signals suggest a possible shift toward distribution. The current gap from peak levels and the potential for long-term holder exits indicate that the market may experience some volatility in the coming days. Despite these challenges, the overall trend remains positive, with buyers gradually regaining confidence in the market. The bullish on-chain signals and positive spot ETF net flows provide a strong foundation for a potential bullish breakout in the near future.