Bitcoin (BTC) Renewed Interest as Market Players Anticipate Break of All-Time High This Month

Bitcoin is experiencing renewed interest as traders gain confidence in its possible break of the all-time high this month. Positive technical triggers

Bitcoin (BTC) traders are now placing their bets on the possibility of the cryptocurrency breaking its all-time high this month, leading to renewed interest in the digital asset.

As reported by Polymarket, a decentralized prediction platform, 52% of users believe that Bitcoin will be trading above $115,000 this May. Another 26% of participants anticipate the price to be over $115,000, while 13% predict the price to reach at least $90,000. These figures highlight the strong bullish sentiment among participants who are solely focused on short-term price action.

The U.S. Consumer Price Index (CPI) for April will be released on Tuesday, May 13, at 12:30 ET. Economists polled by Dow Jones anticipate a 0.4% monthly increase in the CPI and a 2.3% year-over-year rise.

The April CPI data will be closely watched by investors, especially after the March report showed signs of sticky inflation. A softer-than-expected reading could alleviate some pressure on risk assets, such as cryptocurrencies, which have seen modest gains in recent weeks.

Cryptocurrencies had a swift reaction to May 13 after the Sunday release of the U.S. Consumer Price Index (CPI) data. As of 07:08 ET (11:08 GMT), Bitcoin was trading at $91,063 on Binance, down 0.8% over the past 24 hours.

The DeFI Lumen (CRYPTO: LVL) token had the largest price increase among the top 100 cryptocurrencies over the past 24 hours, surging 103%.

The Crypto Fear and Greed Index is also shifting sharply into bullish territory. The index, which measures the overall sentiment in the crypto market, climbed to 73, indicating ‘extreme greed.’

This marks a significant change from last week, when the index fell to 17, the lowest level since December 2022. The return of confidence follows several weeks of caution as investors grew wary of macroeconomic risks and geopolitical concerns.

The 50-day and 200-day moving averages are also converging, which some traders say could lead to a temporary consolidation in the price of Bitcoin. Despite this, the overall structure remains positive.

The total futures open interest is now $67.47 billion, which is approaching the $70 billion mark. More than $36M in short positions were liquidated over the last 24 hours.

The OI-weighted funding rate is 0.0075%, which continues to show that the market is skewed towards bullish traders in the derivatives markets.

As technicals, sentiment, and institutional activity become harmoniously bullish, Bitcoin is now setting the stage to challenge its old all-time high.

Now, traders will be keeping an eye on the confirmation of the next breakout.

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