Bitcoin (BTC) Maintains Its Position Above $103,000

Bitcoin has maintained its position above $103,000 currently, following a significant upward earlier this week. Although whales are taking profits

Bitcoin (BTC) managed to stay above the $103,000 level despite recent selloffs by whales. As technical indicators and institutuional buying suggest that the current uptrend might continue, analysts say that Bitcoin must hold above $90,000 to keep the upward trajectory.

Ali Charts Analysis Hint At $120K Peak

Analyst Ali Martinez observed that Bitcoin is building a solid uptrend with the Cumulative Value Days Destroyed (CVDD) metric showing the cryptocurrency trading above its “HOT” line.

"We are in the middle of the second accumulation phase and the next cycle peak could be around $120,000 as long as the $90,000 support holds," said Martinez.

According to Martinez, Bitcoin prices usually stay within the typical ranges defined by past market cycles, which implies that further increases in price are possible if the economic and technical conditions remain favorable.

During a 72-hour period, wallets holding 1,000 to 10,000 BTC sold over 30,000 BTC. The major selling trend by whales came after Bitcoin passed the $100,000 mark.

The large outflows suggest that a price decline might be imminent.

"We can clearly see that over the last 72 hours, there has been a massive selloff by whales, with over 30,000 BTC sold from wallets holding 1k to 10k," said Martinez.

ETF Inflows Continue As Futures Premium Drops

In the face of recent selloffs, institutional investors appear to be remaining interested in Bitcoin. Spot Bitcoin ETFs in the U.S. saw inflows of $319.56 million on May 14, reversing the $96 million of outflows that were noted the day prior.

However, in the futures markets, there are signs of caution. The premium on two-month Bitcoin futures dropped from 7% to 5%, according to Laevitas, indicating a pullback in bullish positions.

The last time that premium was seen at such a high level, it was linked to Bitcoin trading at around $84,500, which might signal that traders are expecting periods of sideways movement or low volatility in the market ahead of further price increases.

Technical Analysts Still Bullish On Structure

According to analyst Michaël van de Poppe, Bitcoin is in a good upswing so far and should continue to rise if it secures support above $98,000.

"The view remains unchanged on Bitcoin. As long as it stays above $98K, we'll be fine for further continuation upwards. Last consolidation before we'll break ATHs and start having fun."

According to van de Poppe, the $110,000–$115,000 price level will be an interesting area for accumulation. He also noted how a clear double-bottom pattern below $81,000 acted as resistance to the recent upward surge.

Analyst Javon Marks mentioned that Bitcoin has recently formed a bull flag pattern just below its record price.

"A break above the flag could set up new highs for Bitcoin. Also, we're used to seeing altcoins like this, come after big BTC moves, which ties into the cycles from the last bull run."

Recently, BitMEX founder Arthur Hayes predicted that Bitcoin will hit the $1 million mark in just under six years.

According to Hayes, the main driver of the price increase will be the loss of confidence in U.S. Treasuries and the inflow of global capital into cryptocurrencies.

"The last time the world's central bankers and finance ministers met for the World Bank/IMF Spring Meetings in April 2023, the narrative was that we are headed for a global recession. But instead, we got a series of surprising economic reports and sticky inflation that prompted the Fed to keep interest rates higher for longer."

According to his calculations, over the next four to five years, Bitcoin's price could increase to $1.2 million.

As more people move money away from conventional investment options, such as stocks, bonds, and real estate, and into Bitcoin, it might become a more widely adopted store of value.

At the time of writing, Bitcoin trades at $103,663, up 1.7% in 24 hours.