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Bitcoin has surged past the $94,000 mark, sparking fresh enthusiasm among retail traders. However, market analysts caution that a potential price retracement may be on the horizon. Insights from on-chain analytics suggest that the current market sentiment could signal a local top.

Retail Traders Show Heightened Interest

According to data from analytics firm Santiment, fear of missing out (FOMO) among smaller traders spiked following Bitcoin’s recent price jump. This type of behavior often coincides with market tops. In a statement, Santiment noted,

“$100K could very likely arrive in the near future, but it typically won’t happen until the rocket emojis calm.”

Whales Continue Accumulating Bitcoin

While retail traders are showing signs of FOMO, larger holders are steadily increasing their positions. Santiment reported that wallets holding between 10 and 10,000 Bitcoin have added over 19,255 BTC in a short timeframe. Since March 22, these large players have accumulated more than 50,000 BTC, now collectively holding over 67% of Bitcoin’s total supply.

On-Chain Metrics Indicate Positive Trends

Complementing these observations, CryptoQuant shared analysis highlighting positive on-chain trends. The 100-day moving average of Bitcoin netflows to exchanges has dropped to its lowest point since February 2023. This marks the highest Bitcoin outflow from exchanges in over two years, a potential sign that investors are moving assets to self-custody or cold storage for long-term holding.

A CryptoQuant analyst remarked,

“A review of historical patterns suggests that this could imply re-accumulation of assets by investors.”

Institutional Investment on the Rise

Institutional interest in Bitcoin remains strong. U.S.-based Bitcoin exchange-traded funds (ETFs) saw $2.68 billion in net inflows over the past week. Analysts believe this growing institutional participation could positively impact Bitcoin prices in the coming months. In one of the most bullish forecasts, ARK Invest has projected that Bitcoin could reach between $300,000 and $2.4 million by 2030, depending on adoption scenarios.

Technical Analysis of Bitcoin

On the technical front, Bitcoin recently broke through resistance at $87,724, supported by strong trading volume. As of this writing, Bitcoin is trading at approximately $93,289. With a relative strength index (RSI) of 66.10, the cryptocurrency is approaching overbought territory but remains within the range for further upward momentum.

The widening Bollinger Bands indicate increased volatility, which could lead to significant price swings. Key resistance is established at $95,091.87, while major support lies at $87,724. Although bullish momentum is apparent, some consolidation may occur before the next upward move.

Stay informed on the latest cryptocurrency updates and trends with Global Crypto News.

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