Bitcoin has a good chance of hitting $120K as several metrics turn bullish

The key takeaways

• Bitcoin’s price has consolidated below its previous high of $112,000

• BTC may be on course to reach $120,000 due to the accumulation of whales, ETF inflows as well as other factors.

BitcoinBTCBTC still has more potential, as shown by multiple technical and Onchain indicators.

Bitcoin whales are accumulating more BTC

In anticipation of future price rises, large Bitcoin investors are increasing their holdings. Market intelligence firm CryptoQuant data shows that wallets with between 1,000 to 10,000 BTC have increased dramatically since May 6. This coincides with a 16 percent price rise over this period.

It is an a “sign of growing investor confidence,” said CryptoQuant added the following in a 29 May post to X: 

“It is historically linked to higher prices.”

Ochain data providers Santiment and highlighted There is a rapid accumulation of BTC in wallets that hold between 100 BTC and 1,000 BTC. 

The group, which has more than 337 wallets and a total of more than 122,330 BTC (about $13.3bn at the current price), has been adding more in recent weeks.

“Over the past 5 years of Bitcoin’s history, no tier of wallets has been more price-correlated to crypto markets than the behavior of whales holding between 100 to 1,000 $BTC.”

Glassnode data: additional data shows Bitcoin Accumulation Score at 1 indicates significant accumulation of large investors.

This is an overall positive sign, as the continued accumulation of assets signals a bullish attitude amongst this group.

Bitcoin ETF strong spot inflows

US-based spots Bitcoin exchange-traded funds Data from SoSoValue shows that (ETFs), continue to experience massive inflows of capital. These investment products recorded inflows in 10 straight days totaling $4.2 Billion. 

Bitcoin ETFs can be purchased. “seen a sustained period of buy-side pressure that originated in late April, and remains strong today,” said Glassnode, a blockchain analytics company, added the following in its Week Onchain Report.

“This large and sustained buy-side pressure from both retail and institutional investors suggests a continued confidence in the asset, and has been a meaningful tailwind for the market, supporting all previous ATH breaks since they went live in 2024.”

CoinShares and other Bitcoin-based products are no exception. pointing out Net inflows into BTC funds during the week of May 23 totaled 2.97 billion dollars.

Investor sentiment stays positive

Positive sentiment has been sustained in social media circles about Bitcoin and cryptocurrency assets. The Crypto Fear & Greed Index, a barometer of investor sentiment, stands at a notable score of 74, hinting at prevailing “greed” Markets are booming.

This index has risen above the 50-point mark after being below it between February and April. This index should be maintained in the “greed” Zone since 6 May strongly indicates that market participants have a positive outlook for the crypto market.

In the past, this pattern of market sentiment was a leading indicator for price increases and may be a sign that upcoming bull runs are on their way. It is interesting to note that the index was significantly lower in March 2024 than it was in December 2024. 

This suggests that the Crypto Fear & Greed Index could still rise into the “extreme greed” Bitcoin could reach new heights if the price zone is extended beyond 85. 

Related: Bitcoin price will reach $130K or even $1.5M, top bulls say

Bitcoin’s OI stays high even after ATHs

Open interest Since the local low of $74,000 in April, (OI for Bitcoin Futures Contracts) has grown significantly. expanding to a record high CoinGlass’ data indicates that CoinGlass has seen a rise in CoinGlass from $50.8 billion to $80.5 Billion on the 23rd of May, up from $50.8billion on 8th April.

The IO is currently at $78.4 billion, reflecting a $27.6 billion or a 54% increase over the last 50 days alone, suggesting a buildup of leverage ​​often accompanying bullish environments.

Glassnode data shows that open interest for options contracts, which was previously $20.4 billion dollars, has risen to a record high $46.2 Billion.

Glassnode note:

“The rapid expansion of options open interest reflects a maturing investor base which is increasingly employing option contracts to execute more sophisticated strategies to fine-tune their risk management and trading positions.”

In the past, historically, the markets enter an euphoric period when OI is high and continues for a long time. The Bitcoin price is still at all-time records, and investor interest in the derivatives markets continues to increase, leading to a rise in price.

Bitcoin price eyes $120K next

Liquidation data This chart shows an order cluster between $111,000 to $115,000 in size. As market makers search for liquidity, these positions act as magnets and tend to pull prices towards them.

BTC will continue to climb, and short sellers may feel pressured into exiting, leading to a cascade buy order.

The price is often a little ahead of the liquidity map. Due to the dense activity in the area above, it is difficult to predict prices. all-time highsIn the near future, it appears that the way of least resistance is upward.

Glassnode has argued that BTC is currently priced too high. “still has more room for further expansion before the unrealized profit held by investors reaches an extreme level,” The upper MVRV bands are around $120,000.

“As the market moves into a phase of price discovery, the $120K level appears as a key zone of interest, with sell-side pressure expected to accelerate in and around this zone.”

Cointelegraph reportedBitcoin will likely reach $120,000 by the end of 2025, and then $200,000 at year’s end.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making their final choice.