Bitcoin Hits $100K Amid Strong Long-Term Demand
Key Takeaways
- Bitcoin (BTC) has surpassed the 100,000 USD mark.
- Strong capital inflows from new buyers are driving the price increase.
- The Relative Strength Index (RSI) for new buyers remains consistently at 100 – a sign of high demand.
- At the same time, there is a lack of support from momentum buyers.
- Net outflows of BTC from exchanges indicate increased accumulation.
New Buyers Push Bitcoin Above 100,000 USD
Bitcoin has experienced a significant price surge in recent days: rising from around 93,000 USD to over 105,000 USD. According to on-chain data, the main reason for this increase is growing demand from new market participants. This trend is confirmed by the Relative Strength Index (RSI) for new buyers, which has remained at 100 for a week. An RSI of 100 signals strong buying activity and suggests that many new investors are entering the market.
Fresh Capital Fuels the Market
In the past 20 days, approximately 6 billion USD worth of newly issued USDT (Tether – a cryptocurrency pegged to the US dollar) has been injected into the crypto market. This indicates high liquidity, particularly flowing into Bitcoin. Capital rotation – the movement of capital between different assets – has also increased significantly: from 6 billion to 26 billion USD within a month. This shows that investors are increasingly reallocating capital into Bitcoin.
Bitcoin Outflows from Exchanges Increase
Another sign of growing demand: net outflows of Bitcoin from centralized exchanges have dropped to a weekly low of just 1,600 BTC. This means more Bitcoin is being withdrawn from exchanges than deposited – a typical behaviour of long-term holders. When investors withdraw their coins from exchanges, they generally plan to hold them for a longer period. This strengthens the case for a bullish market phase.
Risk: Lack of Support from Momentum Buyers
Despite strong demand from new investors, there is a clear warning sign: so-called momentum buyers – short-term oriented traders – are showing little interest. The RSI for this group is currently only 11. Such a low value indicates weak buying interest and low market participation. Historically, momentum buyers are crucial for sustaining price rallies. Without their support, the current price gains may not be sustainable.
What Does This Mean for the Bitcoin Price?
The current market situation presents a mixed picture: on the one hand, interest from new investors is growing, indicating increasing acceptance of Bitcoin. On the other hand, there is a lack of short-term momentum from speculative buyers. If sentiment among momentum buyers improves, Bitcoin could break through the 105,000 USD mark permanently and reach new all-time highs. If their caution continues, a sideways movement between 100,000 and 105,000 USD is likely.
Our Assessment
The current Bitcoin price increase is based on a solid foundation: new capital, rising demand, and declining exchange balances point to a healthy market structure. However, you should keep in mind that sustainable price gains often rely on speculative buyers as well. The hesitation of momentum buyers is a potential risk. For long-term investors, however, the current situation sends a positive signal: adoption is growing, and Bitcoin remains a sought-after asset.
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Sources
- Glassnode
- CryptoQuant
- Checkonchain
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 104027 |
| 24h % | 0.35 % |
| 7d % | 7.28 % |
| 30d % | 22.23 % |
| 60d % | 23.64 % |
| 1y % | 69.01 % |
| Market Cap | $2,066,503,708,641.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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