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 value at $138,000 and past.
Bitcoin (BTC) is up at this time, 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 elements driving up Bitcoin value at this time.
Spot Bitcoin ETF inflows increase BTC value
Bitcoin’s current value 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 Buyers.
Further knowledge from CoinShares reveals that institutional traders 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 traders, with Technique, previously MicroStrategy, the highest company Bitcoin holder, buying 7,390 BTC price 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 worth is well-positioned to proceed its upward trajectory towards all-time highs and into value 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 complete 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% previously 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, price roughly $16.76 billion on the time, as per Glassnode knowledge.
With the present robust demand for BTC futures contracts, traders 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 day by day chart since Dec. 17, 2024.
A cup and deal with setup is a technical formation that seems when the worth falls initially, adopted by a gradual restoration in what seems to be a U-shaped restoration, which varieties the cup.
The restoration results in a pullback transfer, whereby the worth tendencies decrease inside a descending channel, forming the deal with.
The sample is resolved when the worth breaks above the deal with, rallying to an roughly equal measurement to the prior decline. The BTC/USD day by day chart under illustrates an analogous bullish technical setup.
Word that BTC’s value now trades above the deal with vary and is pursuing a break above the neckline resistance at $106,000.
A decisive day by day candlestick shut above the neckline may lead the BTC value 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 entails danger, and readers ought to conduct their very own analysis when making a choice.
