Why is Bitcoin value up as we speak?

Key factors:

• Bitcoin gained 3% to above $105,000 on Might 20, fueled by excessive open curiosity within the futures market and rising institutional demand.

• A traditional bullish sample is in play, concentrating on BTC value at $138,000 and past.

Bitcoin (BTC) is up as we speak, rising over 3% within the final 24 hours to over $105,500 on Might 20. 

Information from Cointelegraph Markets Pro and TradingView reveals that the BTC/USD pair climbed as a lot as 5% to an intraday excessive of $107,148 on Might 20 from a low of $102,100 on Might 19. 

Let’s check out the components driving up Bitcoin value as we speak.

Spot Bitcoin ETF inflows enhance BTC value

Bitcoin’s current value rise coincides with rising capital inflows into US spot Bitcoin exchange-traded funds (ETFs), highlighting the rising demand for regulated publicity to the cryptocurrency.

Spot Bitcoin ETFs have recorded inflows 18 out of the final 21 days, accumulating a complete of $6.9 billion in new capital in three weeks, as per data from Farside Investors.

Extra knowledge from CoinShares reveals that institutional traders asserted their optimism in crypto markets as $785 million flowed into crypto investment products, marking a five-week streak of inflows. 

Bitcoin funding merchandise attracted $557 million in inflows over the previous week, indicating rising investor confidence in Bitcoin as a long-term asset.

Extra institutional demand got here from company traders, with Technique, previously MicroStrategy, the highest company Bitcoin holder, acquiring 7,390 BTC worth about $765 million final week. Japan’s Metaplanet has bagged another 1,004 BTC for about $129 million as per a Might 19 announcement. 

With rising institutional demand for Bitcoin, the value is well-positioned to proceed its upward trajectory towards all-time highs and into price discovery.

Bitcoin OI hit all-time highs

A rise in open lengthy BTC positions within the futures market preceded Bitcoin’s rally to $107,000. Bitcoin’s complete open interest (OI) within the derivatives market elevated to an all-time excessive of $72.63 billion on Might 20 from $57.1 billion on April 19, knowledge from CoinGlass reveals. 

The chart above reveals that Bitcoin’s OI has jumped 27% up to now 30 days, suggesting elevated demand for leveraged BTC positions.

Moreover, Bitcoin CME futures OI additionally hit a 90-day excessive of 157,875 BTC on Might 19, value roughly $16.76 billion on the time, as per Glassnode knowledge. 

With the present sturdy demand for BTC futures contracts, traders predict Bitcoin to proceed its uptrend much like the one which occurred between late October 2024 and December 2024, when rising OI accompanied BTC’s 84% rally to its earlier all-time highs of $108,000 reached on Dec. 16, 2024.

Bitcoin’s cup-and-handle sample targets $138,00

From a technical perspective, the BTC/USD pair has been forming a cup-and-handle chart sample on its each day chart since Dec. 17, 2024.

A cup and deal with setup is a technical formation that seems when the value falls initially, adopted by a gentle restoration in what seems to be a U-shaped restoration, which types the cup. 

The restoration results in a pullback transfer, whereby the value traits decrease inside a descending channel, forming the deal with.

The sample is resolved when the value breaks above the deal with, rallying to an roughly equal dimension to the prior decline. The BTC/USD each day chart under illustrates the same bullish technical setup.

Be aware that BTC’s value now trades above the deal with vary and is pursuing a break above the neckline resistance at $106,000. 

A decisive each day candlestick shut above the neckline could lead on the BTC value to confront resistance from the $109,000 all-time excessive.

Breaking this barrier would clear the trail towards the technical goal of the prevailing chart sample at $138,000, up 31% from the present stage.

As Cointelegraph reported, a transfer to new highs of $116,000 might come as early as this week.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.