The rise in price is backed by both market confidence and steady inflows. Analysts say new investors are buying Bitcoin while existing holders take profits. This balance between profit-taking and buying suggests the rally still has room to grow.
Profit-taking usually signals a price top, but Bitcoin’s realized profit levels are still below the danger zone. According to market data, the red flag appears only when profits cross $1.5 billion. Until then, there’s space for more gains.
Capital inflows have been steady since October 2023, with demand outpacing outflows. This has created a strong foundation for Bitcoin’s recent performance. Positive sentiment is also supported by spot ETF activity, which continues to show strong investor interest. Apart from a brief outflow of $85 million on May 6 – linked to U.S. interest rate uncertainty – ETF inflows remain robust.
If Bitcoin breaks through the $100,000 resistance, the next key level is $105,000. Clearing that could open the path toward $110,000. But if momentum fades, Bitcoin risks falling back to $93,625.
For now, bulls remain in control as inflows and sentiment continue to support the upward trend.