BTC Indicators Show Bullish Outlook; What’s Next For Bitcoin

Bitcoin (BTC) has led crypto market gains this month, trading in line with on-chain projections. Data shows several technical indicators tilting toward a full-scale uphill run for the asset. Meanwhile, BTC regained $72,000 after several months, with bulls suggesting a new all-time high. Altcoins have also picked up steam in the last 24 hours, doubling down on multiple metrics at the start of the month. The wider crypto market capitalization stands at $2.45 trillion, a 5.2% growth in intraday trading.

Bitcoin Short-Term Holder Metric Indicates Rally

Data from on-chain analysts shows that the asset short-term holder SOPR metric is soaring to profit levels, indicating signs of bullish traction. The metric is used to assess the profit margin of short-term Bitcoin holders and is calculated for coins held for less than 155 days but above an hour. This metric focuses on short-term trades in the crypto market, showing their gains in a given period and highlighting future market growth. 

A value above 1 shows a high percentage of holders who have made profits, while below 1 signifies wider losses. The latter represents an imminent bear market or a short-term correction wiping off immediate profits. The indicator soared above 1.0117 after BTC traded above $70k, pointing to holders taking in profits.

“If the price of Bitcoin surpasses the point high and the short-term holder SOPR value continues to spike, we could see the start of a full-blown rally. However, the outcome of the US election could be a major turning point for asset prices, including coins, so it’s worth considering the risks and reacting accordingly.”

BTC Demand Soars

The asset trading in positions not recorded in months shows a spike in demand from retail and institutional investors. A major indicator is inflows to spot Bitcoin ETFs and other institutional flows in a specific range. As inflows surge, the asset’s price gains momentum, with bulls signaling a major jump.

Furthermore, the asset’s supply in profit spells a parabolic trajectory as it tapped an 85% surge. Many traders believe a bull drive is on the cards following inflows similar to Q1 2024. This upward trend is also seen in meme coins, which record double-digit gains quickly. The meme coin frenzy dominated Q1 statistics after the approval of spot BTC ETFs.