Bitcoin (BTC) is showing strong signs of reaching a new all-time high, driven by three key on-chain indicators. Institutional investors have re-entered the re-accumulation phase, and the NVT indicator suggests a potential local bottom in the $69,000-$70,000 range. As a result, market optimism has surged, with investors anticipating Bitcoin to surpass the $74,000 mark soon.
Bitcoin Whale Reaccumulation
According to data from CryptoQuant, institutional investors have shifted from a distribution phase in March to a re-accumulation phase over the past two weeks. This renewed buying activity is already influencing market prices and is expected to strengthen further in the coming weeks. If this trend continues, Bitcoin could enter a new price discovery zone and hit a new all-time high.
Bitcoin Price NVT Golden Cross Hints Local Bottom
CryptoQuant reports that since February 2024, the NVT Golden Cross (GC) indicator has consistently identified local bottoms within the range of 0.00 to -1.00 points. Currently, the NVT GC stands at 0.14 points, suggesting a potential local bottom in the $69,000-$70,000 region. Supporting this analysis is the recent $886.6 million inflow into Bitcoin spot ETFs. CryptoQuant will continue to monitor the NVT GC closely as it approaches the critical white zone.
Bitcoin Volatility Index and Adjusted MVRV
The Bitcoin Volatility Index (SMA-30d), a key indicator of Bitcoin's volatility, is currently experiencing a significant dip. This index factors in trading activity on exchanges, suggesting a potential slowdown in price swings for the cryptocurrency. Historical data shows only four instances of such low volatility in the past six years, indicating a period of unusual calmness. While some analysts view this as a sign of stability, others might interpret it with caution.
Additionally, the Adjusted MVRV (30DMA/365DMA) metric reveals similarities between the current market and the 2015-2018 period. The current trajectory mirrors a smooth progression, surpassing the halfway mark and avoiding the turbulence experienced in the previous cycle.
Derivatives Market Activity
In conjunction with these indicators, open interest in Bitcoin has surged past $2 billion in the last three days, highlighting strong action in the derivatives market. This surge in open interest can potentially drive the Bitcoin price to new highs.
As Bitcoin maintains a strong position around $71,000 and forms a new base, the collective impact of whale reaccumulation, NVT Golden Cross indications, and low volatility suggests that BTC is well-positioned for a bullish momentum. Investors are eagerly watching to see if Bitcoin will indeed surpass its previous all-time high and set new records.
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