Bitcoin Climbs Again: What Are the Signals Pointing To?
Bitcoin may have on Friday following a wave of volatility sparked by a high-profile media dispute between President Donald Trump and Tesla CEO Elon Musk .
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But despite the brief correction, on-chain data suggests Bitcoin’s bullish momentum remains firmly intact.
Bitcoin Rebounds After Political Turmoil
On Monday, Bitcoin (BTC) demonstrated strong resilience and recovery, trading around $106,800, a 6.5% gain from Friday’s lows near $100,000. The dip followed heightened political tensions fueled by Trump and Musk’s public clash, which briefly rattled investor sentiment.
Bitcoin (BTC) rebounds after Friday’s dip. Source: TradingView
On-Chain Indicators Paint a Bullish Picture for Bitcoin
Data from CryptoQuant shows that Bitcoin reserves on centralized exchanges (CEXs) have decreased by 2.88% over the past week, falling from 2,435,613 BTC to 2,365,410 BTC.
“This is highly bullish for Bitcoin for several reasons,” says Carmelo Alemán, an on-chain analyst at CryptoQuant.
According to him, declining exchange reserves typically mean reduced selling pressure and growing investor confidence. It also signals accumulation by long-term holders who intend to store rather than sell.
In addition, Bitcoin’s Realized Capitalization, which tracks the value based on the last time each coin moved, has reached an all-time high of $934.88 billion. This record reflects steady capital inflows and long-term conviction among holders.
Exchange netflows further support this view. Netflows have remained negative, indicating that more BTC is being withdrawn from exchanges than deposited, a classic signal of ongoing accumulation and decreased short-term selling interest.
“This supports the previous two metrics and confirms accumulation and strong holder conviction,” notes CryptoQuant’s analyst.
Meanwhile, UTXO value band analysis, which monitors the distribution of BTC across different wallet sizes and holding periods, shows growth across various categories. This typically suggests both retail and institutional investors are increasing their holdings and showing reduced willingness to sell.
“The convergence of these on-chain metrics points to one direction: Bitcoin has to keep moving higher,” highlights Carmelo Alemán.
Why This Matters
Investor sentiment is stabilizing after being triggered by political turbulence as various metrics suggest that Bitcoin’s next move could be upward, driven not by hype, but by structural conviction in the market.
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FAQ
Bitcoin is a decentralized digital currency that operates without a central authority. It uses blockchain technology to record all transactions. New Bitcoins are created through a process called Bitcoin mining, where powerful computers solve complex mathematical problems to validate and secure transactions.
Bitcoin is considered a high-risk investment due to its price volatility. While it has delivered significant long-term gains, it can experience sharp price swings in short periods. Investors should conduct thorough research, understand their risk tolerance, and consider Bitcoin as part of a diversified portfolio.
You can buy Bitcoin on cryptocurrency exchanges like Coinbase, Binance, or Kraken using traditional currency. For storage, options include hot wallets (internet-connected, convenient) and cold wallets (offline, more secure). Hardware wallets like Ledger or Trezor are popular for long-term, secure storage.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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