Bitcoin recently hit a new all-time high of $112,000, only to see a small dip of about 5%. But don’t worry, experts say this is just a minor blip.
Still a Bull Market? The Data Says Yes!
Despite the recent pullback, Bitcoin is still looking very strong. Analyst Axel Adler points out that huge amounts of money – around $1.8 billion every day – are flowing into Bitcoin. That’s the same level we saw back in November 2021 when Bitcoin was trading around $64,000. This shows investors are still super confident in Bitcoin.
Why is Everyone Still Buying Bitcoin?
Even with global economic uncertainty (rising interest rates, political tension, etc.), people are still piling into Bitcoin. Many see it as a safe haven against inflation and economic instability. The massive daily inflows confirm this. In fact, the biggest inflows this cycle were even higher, hitting $3.6 billion and $4.5 billion at $73,000 and $92,000 respectively.
What the Charts Are Saying
The weekly Bitcoin chart shows a healthy consolidation period just below the all-time high. While there’s been a small pullback, the overall trend is still very bullish. Bitcoin is comfortably above key support levels, and trading volume is steady, showing no signs of panic selling. A break above $109,300 would signal a strong continuation of the upward trend, potentially pushing Bitcoin towards $120,000. A drop below $103,600 could lead to further testing of support levels.
The Bottom Line
The recent dip is likely just a temporary pause. With massive daily inflows of capital and a strong underlying trend, Bitcoin is poised to continue its upward trajectory. The next few weeks will be crucial, but the overall outlook remains positive for Bitcoin investors.
