Bitcoin (BTC) has witnessed an intriguing week in terms of price volatility. It experienced a notable breakthrough, surpassing the $67k resistance area on May 20th.
On May 23rd and 24th, Bitcoin retested this area as support and bounced higher to trade at $69.1k at the time of writing.
The upward momentum may continue as demand for the cryptocurrency king continues to rise.
Strike CEO Jack Mallers affirmed that "Bitcoin is the best asset you can own" in a conversation with Antony Pompliano.
Social metrics and on-chain activities are weakening. Bitcoin's Social Volume has gradually decreased since March 11th. Weighted Sentiment mostly resides in the negative territory throughout May.
Collectively, they indicate a decrease in social media interaction.
Daily activities have also trended lower since mid-March. Conversely, the amount of dormant circulation has seen a notable spike on April 18th and May 15th.
However, their scale doesn't match the increases seen in March or late February.
This reveals the absence of long-held Bitcoins in on-chain activities, indicating a large selling wave has yet to come. This is a positive sign as it highlights reduced selling pressure.
Demand for Bitcoin is high. In a post on X (formerly Twitter), cryptocurrency analyst Axel Adler pointed out that demand is very hot. This conclusion is drawn based on the entity-adjusted transaction count index.
Based on the chart data, demand is nearing the 2016 surge.
He also noted that the Bitcoin price back then was $300, compared to $69.1k now. Therefore, the amount of capital involved is much greater than 8 years ago.
This demand comes from retail and institutional investors, combined with reduced selling pressure from dormant circulation figures, indicating that Bitcoin is likely to soon reach new all-time highs.
You can view coin prices here.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
