Bitcoin Boom Imminent? Institutional and Derivatives Data Hint at Hidden Bullish Momentum

Bitcoin (BTC) climbed above $126,000 for the first time ever on ￰0￱ what followed was a quick retreat of around 4% shortly ￰1￱ the short-term pullback, the broader trend shows a historic lull in ￰2￱ asset’s long-term volatility has dropped to record lows, which means that Bitcoin is entering one of its calmest phases ￰3￱ a pattern has often preceded major price movements in the ￰4￱ a Cycle Top For BTC, Yet According to Alphractal, Bitcoin’s 180-day volatility has fallen to its lowest level on ￰5￱ metric, which tracks the standard deviation of daily return fluctuations, indicates that traders are witnessing historic ￰6￱ analytics platform explained that such low volatility often precedes major price ￰7￱ analyst ￰8￱ Street also believes Bitcoin is gearing up for its next major rally after a brief pullback from its recent all-time ￰9￱ a sharp 16% rise from $108,000 to $126,000 in just 10 days, he argues that BTC is consolidating rather than topping ￰10￱ to bearish calls for a cycle peak, he sees this phase as a setup for a renewed surge into price ￰11￱ important factor, according to him, is the ongoing accumulation by institutional giants like BlackRock, which reportedly purchased $1.2 billion in Bitcoin on Tuesday and $3.3 billion the week ￰12￱ Street contends that such large-scale buying will intensify and end up absorbing liquidity and forcing short sellers to capitulate.

Technically, he anticipates a retest of the 4-hour EMA200 before a decisive breakout, which is expected to echo the pattern seen before the $110,000 ￰13￱ the macro front, he points to weakening US economic data and an increasingly dovish Federal Reserve stance as catalysts for dollar ￰14￱ factor, he believes, will further lift ￰15￱ Retreating Fast Bitcoin’s derivatives market is also pointing towards a rapidly fading selling ￰16￱ net taker volume, a metric comparing the size of buy and sell orders across derivatives platforms, has rebounded from “an extreme low” of -$400 million to a neutral ￰17￱ transition is, hence, deemed a critical change in trader behavior, and suggests that bearish sentiment is waning after months of ￰18￱ recoveries in net taker volume have previously coincided with phases where BTC’s price action gained stronger support from derivatives activity.

A similar setup was observed following the April correction, which led to renewed bullish ￰19￱ market’s medium-term outlook now appears to be stabilizing as buying and selling forces reach equilibrium.