Key factors:
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Bitcoin gained 3% to above $105,000 on Could 20, fueled by excessive open curiosity within the futures market and growing institutional demand.
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A traditional bullish sample is in play, concentrating on BTC worth at $138,000 and past.
Bitcoin (BTC) is up as we speak, rising over 3% within the final 24 hours to over $105,500 on Could 20.
Knowledge from Cointelegraph Markets Professional and TradingView exhibits that the BTC/USD pair climbed as a lot as 5% to an intraday excessive of $107,148 on Could 20 from a low of $102,100 on Could 19.
Let’s check out the components driving up Bitcoin worth as we speak.
Spot Bitcoin ETF inflows enhance BTC worth
Bitcoin’s latest worth rise coincides with rising capital inflows into US spot Bitcoin exchange-traded funds (ETFs), highlighting the rising demand for regulated publicity to the cryptocurrency.
Spot Bitcoin ETFs have recorded inflows 18 out of the final 21 days, accumulating a complete of $6.9 billion in new capital in three weeks, as per knowledge from Farside Traders.
Further knowledge from CoinShares reveals that institutional buyers asserted their optimism in crypto markets as $785 million flowed into crypto funding merchandise, marking a five-week streak of inflows.
Bitcoin funding merchandise attracted $557 million in inflows over the previous week, indicating rising investor confidence in Bitcoin as a long-term asset.
Extra institutional demand got here from company buyers, with Technique, previously MicroStrategy, the highest company Bitcoin holder, buying 7,390 BTC value about $765 million final week. Japan’s Metaplanet has bagged one other 1,004 BTC for about $129 million as per a Could 19 announcement.
With growing institutional demand for Bitcoin, the value is well-positioned to proceed its upward trajectory towards all-time highs and into worth discovery.
Bitcoin OI hit all-time highs
A rise in open lengthy BTC positions within the futures market preceded Bitcoin’s rally to $107,000. Bitcoin’s whole open curiosity (OI) within the derivatives market elevated to an all-time excessive of $72.63 billion on Could 20 from $57.1 billion on April 19, knowledge from CoinGlass exhibits.
The chart above exhibits that Bitcoin’s OI has jumped 27% prior to now 30 days, suggesting elevated demand for leveraged BTC positions.
Moreover, Bitcoin CME futures OI additionally hit a 90-day excessive of 157,875 BTC on Could 19, value roughly $16.76 billion on the time, as per Glassnode knowledge.
With the present robust demand for BTC futures contracts, buyers predict Bitcoin to proceed its uptrend just like the one which occurred between late October 2024 and December 2024, when rising OI accompanied BTC’s 84% rally to its earlier all-time highs of $108,000 reached on Dec. 16, 2024.
Bitcoin’s cup-and-handle sample targets $138,00
From a technical perspective, the BTC/USD pair has been forming a cup-and-handle chart sample on its every day chart since Dec. 17, 2024.
A cup and deal with setup is a technical formation that seems when the value falls initially, adopted by a gentle restoration in what seems to be a U-shaped restoration, which kinds the cup.
The restoration results in a pullback transfer, whereby the value tendencies decrease inside a descending channel, forming the deal with.
The sample is resolved when the value breaks above the deal with, rallying to an roughly equal dimension to the prior decline. The BTC/USD every day chart beneath illustrates an identical bullish technical setup.
Notice that BTC’s worth now trades above the deal with vary and is pursuing a break above the neckline resistance at $106,000.
A decisive every day candlestick shut above the neckline may lead the BTC worth to confront resistance from the $109,000 all-time excessive.
Breaking this barrier would clear the trail towards the technical goal of the prevailing chart sample at $138,000, up 31% from the present stage.
As Cointelegraph reported, a transfer to new highs of $116,000 may come as early as this week.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.
