Key Insights:
- •Bitcoin price surged more than 7% in a week and hovered near the $97,000 mark.
- •Recent reports suggest that BTC whales are buying while retail investors are cashing out.
- •The US Spot Bitcoin ETF has recorded an inflow of $1.7 billion this week.
Bitcoin price has recorded a strong rally today, hovering near the $97,000 at the time of writing. This strong rally has also helped in a strong recovery in the broader crypto market, suggesting that investors are regaining confidence in the digital assets.
Meanwhile, it seems that the recent rally was led by the BTC whales, who are once again turning bullish on the flagship crypto. In addition, the institutional interest also remains high in crypto, as evidenced by the recent fund flow data into the investment instrument.
All these bullish developments might have helped push Bitcoin price recently, especially after the recent consolidation phase. Now, the market watchers are evaluating the potential of BTC price to hit the brief $100k resistance ahead.
In addition, the recent surge has also fueled confidence over a potential rally to $100k for Bitcoin USD. So, here we take a quick tour of the recent performance of the flagship crypto and see what may lie ahead for the asset.
Bitcoin Price Hovers Near $97k
BTC price today traded near the $96,800 mark at the time of writing, with a surge of nearly 1.8% over the past 24 hours. However, the trading volume of the asset stayed near the flatline at $60 billion, suggesting muted trading after the recent robust rally.
Bitcoin price has touched a 24-hour high of $97,860, after a strong rally from a low of $94,647 in the same time frame. With this latest surge, the crypto’s weekly return is now at 7.3%, while witnessing a rally of 11.4% over the past 30 days.
Meanwhile, the Wednesday surge could be attributed to a flurry of factors like the whale buying, Spot Bitcoin ETF fund flow, among others. On the other hand, it seems that the retail investors are cashing out despite the bets from the big players.
Why is Bitcoin Price Rising?
According to the leading on-chain analytics firm Santiment, the current market sentiment is “Very Bullish.” A recent report noted that Bitcoin whales and shark wallets holding 10-10K Bitcoin have accumulated a whopping 32,693 BTC since January 10.
This accumulation spree has resulted in a 0.24% rise in their collective bags. On the other hand, shrimp wallets holding less than 0.01 Bitcoin have dumped 149 BTC, a 0.30% deduction to their collective holdings.
Santiment’s color-coded chart indicates that when whales accumulate and retail investors dump, it’s a sign of a potential bull run. The analytics firm notes that this is the ideal setup for a bull run, with smart money buying consistently and micro money bowing out.
However, the duration of this run depends on how long retail investors doubt the mini rally that’s formed. For now, the market remains in the “Very Bullish” green zone, indicating a positive outlook for Bitcoin USD price.
In addition, the US Spot Bitcoin ETF fund flow also suggests that the institutions are betting heavily on the asset. For context, the US Spot Bitcoin ETF has recorded an inflow of $840.6 million on Wednesday, January 14.
This week, the combined fund flow into the investment instrument totaled $1.71 billion in only three sessions. Notably, BlackRock IBIT’s led the Wednesday fund flow with $648.4 million inflow.
What’s Next for BTC Price?
As Bitcoin (BTC) price continues to stay in the green, market watchers are evaluating the potential of its future movements. Notably, some also anticipate the crypto to rally to the $100k mark in the near future.
For context, renowned analyst Ali Martinez said that if Bitcoin USD breaks through the $96,893 level, it could target the $103,379 level next. Besides, if the bulls continue to dominate, the next target would be near $106k, he noted.
Considering all these factors, it seems that the market pundits are bullish over a continuing rally of BTC price towards $100k. However, if market participants decide to book profits after the recent rally, it might hinder the much-awaited run of Bitcoin USD.