Bitcoin’s Quiet Rally: A Breakout Setup?
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Bitcoin's price has steadily climbed, reaching nearly its all-time high of $111,000. Unlike previous rallies marked by sharp spikes and retail speculation, this increase is more measured and stable, prompting analysis of on-chain indicators. Analysts at CryptoQuant, including Avocado Onchain and Crypto Dan, have examined metrics to gauge market sentiment and behavior. Avocado Onchain highlights a declining 30-day moving average of Binary Coin Days Destroyed (CDD), suggesting long-term holders aren't selling, maintaining confidence in Bitcoin's potential. The increasing Coinbase Premium Index, reflecting the price difference between US-based Coinbase and global exchanges, indicates rising US investor demand. However, a low Korea Premium Index suggests muted Asian retail activity, implying institutional buying, particularly from the US, is driving the momentum. The MVRV ratio, a comparison of market value to realized value, is gradually increasing without sharp jumps, indicating the market isn't in an extreme greed phase. Crypto Dan corroborates this, noting consistent buying activity from larger market players and a steadily climbing Coinbase Premium since April 21st. This pattern, coupled with whale accumulation, suggests a robust market foundation. The overall assessment is that this rally, characterized by long-term holder conviction, institutional demand, and subdued retail activity, is building on a more stable foundation than previous surges, potentially indicating further growth. The analysts suggest careful monitoring for continued upside potential rather than anticipating an immediate correction.
