Bitcoin touches $59k, so what’s next?

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Bitcoin is reportedly priced near $59,000 at the time of publishing, and the price continues to rise. The investment inflow of Bitcoin has risen and a huge amount of capital is pouring through the markets of Bitcoin derivatives based on data from IntoTheBlock. Perpetual Swaps’ Open Interest through global exchanges is currently on the brink of breaking the $15 billion threshold, and 53 per cent of that amount goes to the largest exchanges – Bybit, Binance, and FTX.

Institutional inflow falls from the acquisition by MicroStrategy of an extra 262 Bitcoins for $15 million in cash and the latest purchase by Purpose Bitcoin ETF of more than 125000 Bitcoin and Grayscale currently owns 655360 Bitcoin. In addition, the on-chain analysis looks bullish, neutral, and the increasing inflow of liquidity has improved. Interestingly, Bitcoin has changed hands from HODLers who have lately been involved to HODLers who are not trading, and this seems to have reduced the selling pressure, and the price can no longer be limited in the near term.

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Rangebound market activity for more than two weeks resulted from both a reduction in turnover and accelerated inflows from miners to the top spot exchanges. While inflows have not decreased, there is more demand to absorb inflows from top exchanges including Binance, OKEx, and Huobi.

Both institutional and retail demand is rising, and this is focused on bitcoin options and spot exchange activities from the past week. Bitcoin’s concentration of wallets has risen, and considering the fact that Netflow is comparatively higher at $56,000 price level, sales pressure has decreased. In comparison, the main statistic of the Mayer multiple is actually 2.26 and is greater than 94 percent in history.

The Mayer Multiple was known to forecast pattern reversals and primary turnarounds in the price rally based on historical evidence. So far, it has not risen into the right tail of the distribution, and it has to rise slowly to make way for price increases. These signals from the indicators and the on-chain operation signal that the price will no longer stay within the range of the weekend. Given the results, it can be argued that there could be a further price spike if it goes past $59,000, making room for further price exploration.

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