Could BTC test all-time-highs?

Bitcoin, currently trading around $96,017, is consolidating below $100,000, yet several factors hint at a potential price surge. On-chain data shows a significant drop in small Bitcoin holders, suggesting retail investors are selling due to fear. Historically, this capitulation often coincides with large holders, “whales,” accumulating Bitcoin, frequently preceding price increases. This dynamic, combined with the lowest number of non-empty wallets since December, suggests a potential shift in market sentiment.

Options data analysis indicates the recent volatility spike is likely temporary. Forecasts suggest normalization by March, signaling the end of recent corrections. Low market leverage, reflected in funding rates and open interest, further strengthens the bullish outlook. Less leveraged markets are generally more susceptible to upward movements.

Growing institutional interest adds to the positive sentiment. Numerous companies are adding Bitcoin to reserves, citing diversification and inflation hedging. 1 Technically, Bitcoin is relatively close to its all-time high, with identified support and resistance levels. 2 Technical indicators also suggest waning negative momentum, hinting at a potential trend reversal. The combination of retail capitulation, whale accumulation, anticipated volatility normalization, low leverage, increasing institutional adoption, and positive technical signals strengthens the bullish outlook for Bitcoin in the coming months.