Bitcoin’s Recent Recovery Indicates a Stronger, More Viable Bull Market

Bitcoin is currently experiencing a notable trend. Recent data indicates that purchasing sentiment is still positive, suggesting that it may be too early to think about exiting positions.

While it’s challenging to determine when Bitcoin will surpass its previous peak, the existing on-chain and market signals appear to be quite promising.

The Bitcoin Rally Appears Unique This Time

A recent analysis indicates that Bitcoin’s latest price recovery exhibits strength without the typical signs of market overheating. Historically, whenever Bitcoin reached a new all-time high, exchanges like Binance saw substantial spikes in market buy volume and funding rates. These increases were often followed by significant downturns as the market adjusted, which was notably evident in the two major rallies of this cycle.

However, the current rebound seems to differ. As Bitcoin nears its prior highs once more, funding rates are stable, and market buy volume on Binance has decreased. While some might interpret this as a lack of upward momentum, analysts suggest that it reflects a healthier and more sustainable rally.

In contrast to past rallies that led to sharp downturns and mass investor withdrawals, the present trend showcases a market that is relatively light and cautious. Even with improved sentiment, on-chain data points to a gradual increase in buying pressure instead of an abrupt surge. In fact, market buy volume has consistently risen since 2023, signaling ongoing bullish interest.

Consequently, the foundational data—ranging from funding rates to buy volumes—endorses a positive market outlook, while the lack of overheating indicates that this rally could be more enduring compared to earlier ones.

Is Bitcoin Ready for a June Surge?

Earlier reports have highlighted that Bitcoin’s Realized Capitalization has hit an all-time high of $906 billion, showcasing increased investor confidence and robust on-chain fundamentals. This metric has been on the rise for four successive weeks.

Since May 8, Bitcoin has garnered $14.4 billion in new investment, with large holders (those holding between 100-1,000 BTC) boosting their total balance by 122,540 BTC, which is a 2.2% increase. While most institutional ETFs have been cautious, BlackRock has added 10,302 BTC to its holdings. This steady influx of capital could pave the way for a breakout, especially if Bitcoin can maintain resistance at $104,731. The next potential target could be $107,757.

Additionally, factors such as improving technology earnings, reduced fears over AI capital expenditures, positive political sentiment under Trump, and upcoming payouts from FTX could all contribute to a robust rally for Bitcoin in June.