Bitcoin Surges 35% in Volume, Signals New Bull Market

Bitcoin has maintained a strong position above $111,000, exhibiting no immediate chart resistance and signaling the potential onset of a new bull market. This stability is supported by a significant increase in trading volume, which has surged by over 35%. This heightened market participation underscores the strength of Bitcoin’s price stability above critical support levels and moving averages.

According to COINOTAG, all Bitcoin holders are currently in profit, with rising open interest and options volume underscoring sustained bullish momentum. This indicates that the market is experiencing strong investor confidence and liquidity, with a volume-to-market cap ratio of 2.7% further highlighting active trading conditions.

Technical analysis reveals that Bitcoin faces no significant resistance levels on the chart, a rare occurrence that often precedes strong upward momentum. Market analyst CW8900 emphasized this point, noting that Bitcoin is “in a good stance to start a bull market” and that the current week is critical for confirming this trend. The price remains comfortably above key moving averages, reinforcing the likelihood of sustained bullish momentum. Should Bitcoin surpass the next resistance level, it could validate the beginning of a prolonged bullish cycle, attracting further institutional and retail interest.

On-chain analytics reveal that 100% of Bitcoin holders are currently in profit, a significant indicator of market strength. Additionally, 76% of addresses have held their Bitcoin for over a year, reflecting strong holder conviction and reduced selling pressure. The circulating supply is approaching the maximum cap of 21 million coins, with 19.89 million actively in circulation, emphasizing Bitcoin’s scarcity and value proposition.

Data from Coinglass highlights a notable increase in derivatives market activity, with $211.46 million in short liquidations over the past 24 hours and open interest climbing to $78.75 billion. Options trading volume surged by 69.50% to $5.06 billion, with long positions slightly outnumbering shorts, indicating trader optimism. This heightened derivatives activity aligns with the broader bullish sentiment, suggesting that market participants are positioning for further price appreciation.

Bitcoin’s sustained trading above $111,000, combined with rising volume and supportive on-chain and derivatives metrics, points to a strong bullish momentum. The absence of chart resistance and the high percentage of profitable holders reinforce the potential for a new bull market phase. Investors and traders should monitor key price levels this week, as surpassing these could confirm a sustained upward trend, attracting further market participation and solidifying Bitcoin’s leadership in the crypto space.