Texas is exploring the possibility of creating a strategic bitcoin reserve. Once again, Bitcoin demonstrates that it is now taken seriously as its price hovers around $100,000. While the price of the first capitalization may seem relatively high, the on-chain indicator MVRV shows that the road to the top of the bull run could still be long. Even more so with such significant demand on spot Bitcoin ETFs. Let's take stock of the situation of the current flagship asset in today's bulletin!
The enthusiasm of institutional players is still intact for Bitcoin ETFs
While the recent rise in Bitcoin may not be not the result of a single factorl’enthusiasm of institutional actors is necessarily not for nothing. As can be seen in the graph below, the demand completely explodes in November. Entries are significantly higher than in recent months, and also higher at the start of the year:
There is one week left to further inflate inflows into spot ETFs. However, there have already been more than 6 billion dollars in entries. ETFs recorded ten days in the green and only five days in the negative. And currently, ETFs are chaining a series of four days in a row of incoming flows totaling more than $2.8 billion. The numbers are impressive, and if the trend continues, the king of cryptocurrencies could well go get the $120,000.
Is Bitcoin entering the last phase of the cycle?
With a Bitcoin price that has only been climbing since the beginning of November, and which saves ATH to ATHit is entirely logical to see that 99% of operators are currently in profit. And if we refer to previous cycles, the situation could still last several weeks or even months :
Historically, when the price of Bitcoin clearly crosses the ATH of the previous cyclethe metric has the habit of stay stuck 100% for several months. This is the last phase of the bull run with the typical excesses of a intense speculation (volatility, levers, increase in funding rates, etc.).
Be careful, investors are strongly optimisticcertainly, but that does not prevent BTC from scoring fairly volatile corrections. We notice that the nice you bull run arrives when the percentage of traders in profit starts to fall (generally below 80%).
The BTC price has built support around $89,000
The king of cryptocurrencies isaccelerateit is up by more than 40% since the break of $70,000. The course is in bullish trend according to Dow's law, and it continues to evolve well beyond moving averages 9 and 18 bullish :
Thanks to a slight lateralization for several days, the price of BTC has builds support around $89,000. In the event of a fall, the price could bounce on the double support with the presence of institutional bias (EMA 9/EMA 18) bullish. As long as this level is maintained, the buyers have the advantage on the price. At the same time, the RSI is still bullish. It will have to develop beyond 84 so as not to start showing signs of shortness of breath (divergence).
By well above $70,000, the price of Bitcoin once again enters a phase of excess which generally lasts several months. However, to avoid experiencing bearish volatility on the king of cryptocurrencies, it will be necessary to maintain support at $89,000 on a daily basis. Bitcoin is not the only one to soar, as XRP takes advantage of the departure of Gary Gensler, the chairman of the SEC, to explode by more than 20%.
