Bitcoin (BTC) has surged past the $100,000 threshold, capturing the attention of long-term investors once again. As the leading cryptocurrency and a barometer for the broader crypto market, it has witnessed an uptick in deposits on exchanges since January 11th.
This influx of funds mirrors a similar trend observed on January 6th when Bitcoin briefly touched an all-time high of $102,000. Could a comparable price rally be on the horizon?
Rising Inflows on BTC Exchanges Point to Resumed Activity
Building on its recent momentum, BTC has experienced a notable increase in deposits on exchanges, typically indicating heightened trading activity. This suggests a reinvigoration among long-time holders who were previously exercising caution.
This shift in behavior aligns with Bitcoin’s recent bullish streak, hinting that holders are eager to capitalize on potential gains. Such patterns often signify a Fear of Missing Out (FOMO) sentiment among Bitcoin’s market participants.
Upsurge in Large Transactions Boosts Price Confidence
Further bolstering the optimistic outlook, Bitcoin’s large transactions have been consistently on the rise in the past week. This surge reflects heightened engagement among institutional investors and affluent individuals.
Historically, such substantial movements have preceded significant price shifts, with major market players playing a crucial role in driving volatility. These large transactions provide support for the argument of further upward momentum.
Will FOMO Drive Bitcoin to Greater Heights?
Currently, BTC is trading above $101,000 and seems poised for further upticks in the near future. The prevailing sentiment among holders, now leaning towards greed, might serve as a catalyst for upward price movement.
The psychological appeal of Bitcoin crossing the $100,000 mark is likely to attract interest from both retail and institutional investors. With more participants entering the market, the supply-demand dynamics could amplify Bitcoin’s upward trajectory, potentially leading to a breakout from the bullish pennant under formation.
Nevertheless, this upward momentum could encounter obstacles, such as the dominance of alternative cryptocurrencies and the resistance level of the subsequent pennant formation.