Bitcoin Rally to $113K is Just the Beginning, $130K Next

The key takeaways

• Bitcoin increased to $113.800, as data from onchain shows that BTC held by accumulator accounts has risen 71%.

• Bitcoin’s MVRV metrics suggests that significant profit-taking might not start until BTC reaches $130,900.

• The increase of $4.4 billion in BTC’s realized cap is not a speculative rally, but reflects actual investment.

BitcoinBTC() rose to $113,800 as demand increased from addresses with accumulations. According to data from CryptoQuantOn Wednesday these addresses had accumulated 248,000 BTC, a new high for accumulation. This addresses 30-day demand is 71% higher than it was on 22 June, when 148,000 BTC were held.

It’s the highest level of demand since December 20, 2016, when Bitcoin reached $97,000. Accumulator addresses also hit a new high, 278,000 BTC. This renewed rate of accumulation at higher prices shows that investor confidence hasn’t wavered.

Bitcoin’s demand momentum The fact that the market has rebounded sharply after reaching 2024’s lows in Q4 supports this view. Although the cumulative demand, which includes selling by bears, remains negative the rapid recovery of the metric shows that buyers are taking control. This indicates a foundational demand for BTC spot, with recent selling outweighing strategic accumulation. 

Related: Bitcoin treasury companies acquire record 159,107 BTC in Q2

Bitcoin traders are expected to defer taking profits

Market analyst Axel Adler Jr. believes that Bitcoin’s discovery phase will continue. identified A potential price-to-profit level. Adler Jr. pointed out that, when Market Value to Reaped Value (MVRV), reaches 2,75 it usually signals the central turning point in distribution. MVRV is an indicator that compares the market cap of the BTC to their aggregated cost base.

This threshold, based on the current statistics, corresponds to $130.900 in Bitcoin prices. This level is still 17 percent higher than the current price, so there’s more upside to this rally.

Glassnode outlined Increase in realized cap. Explained that this reflects real capital inflows. The realized cap does not increase when the market cap increases. BTC’s $4.4bn jump after it broke over $113,000 indicates a surge in investor activity and not merely speculation.

Milk Road’s co-founder Kyle Reidhead sets a high standard $150,000 target Bitcoin is based on a cup-and-handle formation that was observed in the last month. “See you at $150K,” He posted on X soon after BTC reached $112,000 to show the growing belief in further gains before any significant correction.

Related: Bitcoiners underprepared for possible $133K price tag in September

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.