Bitcoin Surges 1.9% to $104,393, Driven by Steady Buying Volume and Institutional Demand

Bitcoin has been on a steady upward trajectory, with its price surging past $100,000 and showing no signs of slowing down. The cryptocurrency's rally has been fueled by a combination of factors, including stable funding rates, steady buying volume, and a healthier bull market that avoids typical overheating risks. This trend has been particularly evident since 2023, with market buy volume showing a consistent upward trajectory, indicating sustained bullish interest.

Bitcoin's latest surge has brought it within striking distance of its all-time high, with the cryptocurrency just 4.4% away from reaching this milestone. However, it has encountered strong selling pressure at $107,000, a level that has historically been a significant resistance point. Despite this, historical patterns suggest that Bitcoin could push through this resistance and continue its upward momentum.

The steady increase in market buy volume since 2023 is a clear indicator of the growing confidence in Bitcoin. This trend is marked by a consistent upward trajectory, which has been observed in on-chain data. The steady buying volume suggests that investors are increasingly bullish on Bitcoin, and this sentiment is likely to continue driving its price higher.

Long-term holders are also significantly contributing to this trend. Recent on-chain data reveals these new investors have not increased selling pressure, even as Bitcoin trades close to its previous record high of $108,786 from January. As crypto holdings keep growing, it indicates a belief in rising prices by those who hold the most considerable amounts. This behavior reduces the likelihood of a sudden supply shock but adds a layer of resilience to the current market.

Analysts remain cautious about whether the next Bitcoin all-time high will happen. Moreover, steady funding, growing ownership from long-term holders, and regular buy volume indicate a positive outlook. The latest stats show that Bitcoin is valued at $104,393, a 1.9% increase from the previous day. The market is still heading for slow and steady development rather than abrupt ups and downs.

CryptoQuant’s analyst noted that the present rebound “indicates that the market’s buying sentiment is still favorable for further increases, suggesting that now is not the time to consider exiting.” While short-term volatility may persist, the absence of overheated market conditions sets the stage for a potentially healthier bull market in the coming weeks.

Bitcoin's price has also been influenced by institutional demand and ETF inflows. Institutional interest in Bitcoin has been at an all-time high, with significant inflows into spot Bitcoin ETFs and corporate purchases. This institutional buying spree signals Bitcoin's increasing role as a long-term asset, pushing its price toward new highs.

Despite the bullish outlook, there are risks to consider. A deeper correction to $91,000–$98,500 could occur if the $97,000–$98,500 support fails. Additionally, elevated volatility and profit-taking by large players could lead to a sharp dip to liquidate weak hands. Historical failures, such as the February 2020 golden cross preceding a 62% crash, underscore the need to monitor broader market conditions.

In summary, Bitcoin's rally toward previous highs is driven by a combination of steady buying volume, institutional demand, and favorable macroeconomic conditions. While there are risks to consider, the overall outlook remains bullish, with the potential for Bitcoin to reach new all-time highs in the coming months. Investors should remain cautious and monitor market cycles, as a consolidation phase or correction could precede the next leg up.