5 signs Bitcoin has the potential for further growth

Many on-chain and technical signals indicate that the price of Bitcoin still has the potential to rise further.

Bitcoin whales are accumulating more

Large investors in Bitcoin are increasing their holdings with the expectation that prices will continue to rise in the future. According to data from the market analysis company CryptoQuant, the ratio of wallets holding between 1,000 and 10,000 BTC has surged since May 6, alongside a 16% price increase during the same period.

CryptoQuant stated in a post on May 29 on X:

"This is a sign that investor confidence is increasing. It has historical correlation with prices going higher."

Bitcoin: The total number of whales holding and monthly changes (%) | Source: CryptoQuantThe on-chain data provider Santiment also emphasizes the strong accumulation activity taking place in wallets holding between 100 to 1,000 BTC.

In the past 6 weeks, this group has added more than 337 wallets, with a total accumulated amount exceeding 122,330 BTC, equivalent to about 13.3 billion dollars at current prices.

"Throughout the 5 years of Bitcoin's history, no wallet group has had a correlation with crypto market prices higher than the behavior of whales holding between 100 and 1,000 BTC."

The amount of coins held and the number of wallets containing 100-1K BTC | Source: SantimentData from Glassnode shows that the Bitcoin Accumulation Trend Score (ATS) is at 1, indicating strong accumulation by large investors. Overall, this is a positive signal as continuous accumulation reflects bullish sentiment among this group of investors.

Strong capital flows into spot Bitcoin ETF funds

The Bitcoin spot ETF funds in the US continue to see large inflows of capital. According to data from SoSoValue, these investment products have recorded inflows for 10 consecutive days, with a total value reaching 4.2 billion dollars.

! Flow Data via Bitcoin Spot ETF | Source: SoSoValueSpot Bitcoin ETFs "received strong buying power starting in late April and are still very strong," blockchain analytics firm Glassnode said in its latest Week Onchain report, adding:

"Strong and sustainable purchasing power from both retail and institutional investors demonstrates ongoing confidence in this asset and has become a significant driving force for the market, supporting all previous ATH breakouts since these funds were launched in 2024."

This is also reflected across all other Bitcoin products, with CoinShares reporting that inflows into BTC investment funds reached a net of $2.97 billion in the week ending May 23.

Investor sentiment remains positive

Social media communities continue to maintain a positive sentiment around Bitcoin and crypto. The crypto fear and greed index – a measure of investor sentiment – is currently at a notable level of 74, indicating that the market is in a state of "greed".

Crypto Fear and Greed Index | Source: Alternative.me Notably, the index has now exceeded 50 after fluctuating below the average between February and April. Maintaining the index in the "greedy" zone since May 6 is a clear indication of the positive sentiment that investors are having towards the entire crypto market.

Such market psychology patterns in the past have often been precursors to price increases and may indicate an upcoming bullrun.

Interestingly, this index is still significantly lower than the level of 82 in March 2024 and 94 in December 2024 – those are the local peak times.

This shows that the cryptocurrency Fear and Greed Index can still rise to the "extreme greed" zone ( above 85), potentially pushing the price of Bitcoin to new highs.

OI Bitcoin remains high after ATH

The open contract (OI) for Bitcoin futures has seen significant growth from a local bottom of under 74,000 dollars in April. According to data from CoinGlass, OI increased from 50.8 billion dollars on April 8 to a record 80.5 billion dollars on May 23.

Currently, the OI is at $78.4 billion, reflecting an increase of $27.6 billion – or 54% in the last 50 days alone. This indicates increased leverage, a characteristic that often accompanies a bullish market environment.

Total OI of Bitcoin futures contracts | Source: CoinGlassAlso supporting the bullish trend of BTC is the OI in options contracts, which has surged to a new ATH of 46.2 billion dollars, up from 20.4 billion dollars, according to data from Glassnode.

Glassnode asserts:

"The rapid increase in OI of options contracts reflects a maturing investor base, as they increasingly use options contracts to implement more sophisticated strategies to manage their risk and trading positions."

The open interest in Bitcoin options across all exchanges | Source: GlassnodeHistorically, when the open interest remains high for an extended period, the market often enters a phase of excitement. With Bitcoin prices still fluctuating around historical highs, investor interest in the derivatives market continues to grow, positively impacting prices.

Bitcoin price aiming for the next milestone of 120,000 dollars

Liquidation data shows a large cluster of orders in the price range of $111,000 to $115,000. These positions often act as a "magnet", drawing the price closer to them as market makers seek liquidity.

The liquidation heat map of BTC for 6 months | Source: CoinGlassIf BTC continues to rise, this will put pressure on Short Sellers, forcing them to close their positions, thereby triggering a series of buy orders.

The liquidity map often precedes price fluctuations. With dense activity above the ATHs, the path of least resistance in the short term seems to be upwards.

Glassnode assesses that the price of BTC "still has room to continue expanding before investors' unrealized profits reach extreme levels," as evidenced by the upper band of the MVRV index, which is around the level of 120,000 dollars.

"As the market enters the price discovery phase, the $120,000 mark emerges as a key area of interest, where selling pressure is expected to increase significantly around this region."

Bitcoin: MVRV disparity bands | Source: GlassnodeAccording to Bitcoin Magazine, Bitcoin is expected to reach $120,000 in the first half of 2025 and $200,000 by the end of the year.

Minh Anh