Key Takeaways:
- Bitcoin posted its strongest weekly gain in five months, surpassing $123,000 on Monday.
- The short-term holder Net Asset Value (NAV) premium indicates moderate investor sentiment.
- Spot ETF inflows surged to a record $1.18 billion, strengthening upward momentum.
- Technical analysis suggests a potential continued rise towards the $130,000 range.
Bitcoin (BTC) prices surged, reaching an intraday high of $123,100 Monday on Binance, having closed the previous week at nearly $119,310 – the highest weekly closing candle in weeks. Following this peak, prices settled around the $120,000 mark.
The crypto market data provider CryptoQuant indicates the Net Asset Value (NAV) premium for short-term holders (STH) stands at 16%. This metric gauges sentiment by comparing the market value of coins held for short periods against their average acquisition cost. A moderate level (signified by a green zone, typically 0%-25%) suggests investor caution outweighs potential FOMO (fear of missing out), remaining significantly below historically overheated levels (often exceeding 30%).
Data firm Glassnode reported a 50% jump in Bitcoin spot volume over the past week, currently about 23% below the year-to-date average. While volumes suggest increasing participation in the rally, this does not indicate widespread euphoria.
The rally was significantly fueled by a record inflow into approved spot Bitcoin ETFs: $1.18 billion entered on a single trading day last Thursday. Analysis from Ecoinometrics labels this sustained inflow a “strong buy” regime, implying continued upward momentum. The Coinbase Premium Index, depicting the price differential between Coinbase and Binance, shows sustained buying pressure from US markets, a strong indicator aligning with its prolonged positive SMA-14 from early 2023.
Technical analysis points towards a potential continuation. Bitcoin successfully breached a key resistance level following its previous all-time high. Historically, post-breakout “parabolic” rallies have followed – though the magnitude appears to be diminishing over Bitcoin’s lifecycle. Current projections suggest a potential target range of $132,000-$138,000 before any potential correction.
Related: Bitcoin ‘shows no signs of fatigue’ as it overtakes gold in gains for 2025
Disclaimer: This analysis does not constitute investment advice. Trading and investing in cryptocurrencies involves substantial risk and requires careful consideration.
