As recorded over the past few weeks, Bitcoin (BTC)’s bullish fundamentals have never been more impressive in the months leading up to the halving. Recently approved spot Bitcoin exchange-traded funds (ETFs) have continued to gobble up more Bitcoin each day at a faster rate than miners are producing.
In addition to high demand from cryptocurrency whales, Bitcoin supply on exchanges has fallen to its lowest in years. As a result, it is safe to assume that the Bitcoin price will soon aim for an all-time high (ATH). Moreover, the price of Bitcoin closed above $52,000 on Wednesday for the first time in over two years.
Why Are Bitcoin Bulls Feeling Confident?
Bitcoin bulls have enjoyed strong support from institutional investors who have recently exited fiat and gold markets, as evidenced by high cash inflows into spot ETFs. As a result, Bitcoin’s dominance over the altcoin market has continued to rise despite a notable surge in the overall cryptocurrency industry.
Interestingly, Bitcoin’s monthly Relative Strength Index (RSI) is showing an upward trend, surpassing the $70,000 level, indicating the start of a parabolic phase. With the fourth Bitcoin halving expected to occur within 65 days, Bitcoin bulls are undoubtedly in a good position.
caution call
According to analysts at market intelligence firm Santiment, cryptocurrency traders should tread cautiously amid heightened crowd talk about an imminent ATH. According to Santiment insights, whenever the crowd got extremely greedy, the market reacted with a short-term reversal that liquidated the majority of unsuspecting traders.