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- FOMO among smaller traders rises as Bitcoin’s price surges, often signaling a local market top.
- Long-term investors continue accumulating Bitcoin, with medium holders now controlling over 67% of the supply.
- Institutional adoption grows, with Bitcoin ETFs seeing $2.68 billion in net inflows, signaling further legitimacy.
The recent increase in the price of Bitcoin has attracted the attention of traders and investors respectively. This has left smaller traders particularly concerned with the fear of missing out (FOMO) as the price of Bitcoin continues to climb. Santiment, an on-chain analytics firm, suggests that such FOMO is typically observed in the vicinity of local highs. Although the $100,000 price range is attainable, price trends predict that drastic but changes occur after an uneventful period.
On the other hand, the long-term investors are still on the buying end when it comes to Bitcoin assets. According to Santiment, medium holders —those with 10-10,000 BTC —have purchased more than 19,000 BTC in a short period. These key players have since March 22 garnered more than 50,000 BTC, meaning that they now control over 67% of the total BTC. This has been ongoing, which suggests that people have high expectations on the future of Bitcoin.
Institutional Bitcoin Adoption
There is also increasing institutional adoption as US Bitcoin ETFs had a net inflow of $2.68 billion last week as pointed by SoSoValue. This rise of institutions in the space increases the legitimacy of the cryptocurrency asset and therefore bitcoins especially. Analysts predict that this trend may push Bitcoin price to new heights in the near future, which will have a positive effect in the nearest months.
Additionally, on-chain indicators present an even more optimistic outlook for Bitcoin. On April 25, CryptoQuant reported that the 100MA of Netflow to the Exchange is the lowest since February 23rd, at 12k. This suggests more Bitcoins are held in self or cold wallets, which implies that investors are storing their coins for the long term instead of selling them in the short term.
RSI and Price Momentum
From a technical perspective, Bitcoin recently broke through $87,724, driven by fluctuating volume. Current data reveals that BTC is currently trading at $94,636, having a relative strength index of 69.18. Thus, despite the RSI approaching the overbought level, it remains within a reasonable range that indicates a further upward direction.
Source: TradingView
Furthermore, the continued upward trend in the price of Bitcoin, along with the growing demand from big investors and institutional investors, suggests that the cryptocurrency is well-positioned for further growth. Although some degree of concentration may occur in the near future, it is necessary to note the potential for further growth in the near term, based on technical and on-chain fundamentals.
