Bitcoin Rises Toward Previous Highs as Market Buy Volume Shows Steady Growth

• Bitcoin rallies past $100K with stable funding rates and steady market buy volume.
• Long-term holders hold firm as Bitcoin nears its previous all-time high of $108,786.
• Bitcoin’s current rebound lacks overheating, signaling healthier market conditions.

The current Bitcoin rally, which began near $74,508 in early April and has now pushed the price past $100,000, stands out for its stability compared to previous surges. Recent on-chain and market data show the cryptocurrency rising without the signs of overheating seen in earlier bull cycles. This trend has caught the attention of analysts monitoring the relationship between price movements, futures funding rates, and market buy volume.

In the last bull phase for Bitcoin, an increase in funding rates on Binance and increases in market buy volume coincided with new all-time highs, followed by notable corrections. As futures markets relied too heavily on leverage, the sharp increase in bullish sentiment caused quick stabilizations. 

However, the recent rally has not shown any significant changes in funding rates, and a drop in Binance’s buy volume was observed in recent CryptoQuant findings. This indicates that market trading is cautious and accumulation is steady, but short–term speculation can still be observed.

Related: BTC Prepares for Breakout as May 21 Nears, Deaton Targets $125K After $109K High

Stable Funding Rates and Steady Buying Indicate Strength

Data provided by CryptoQuant analysts highlights that Bitcoin’s current price movement is not showing the same overheated signs as previous rallies. Analysts highlight no sudden spikes in funding rates, while buying activity remains positive despite the lack of aggressive leverage. While subject to short-term fluctuations, market buy volume has risen since 2023, mirroring strength in investor sentiment.

Long-term holders are also significantly contributing to this trend. Recent on-chain data reveals these new investors have not increased selling pressure, even as Bitcoin trades close to its previous record high of $108,786 from January. As crypto holdings keep growing, it indicates a belief in rising prices by those who hold the most considerable amounts. This behavior reduces the likelihood of a sudden supply shock but adds a layer of resilience to the current market.

Outlook for Bitcoin Price and Market Sentiment

Analysts remain cautious about whether the next Bitcoin all-time high will happen. Moreover, steady funding, growing ownership from long-term holders, and regular buy volume indicate a positive outlook. The latest stats show that Bitcoin is valued at $104,393, a 1.9% increase from the previous day. The market is still heading for slow and steady development rather than abrupt ups and downs.

CryptoQuant’s analyst noted that the present rebound “indicates that the market’s buying sentiment is still favorable for further increases, suggesting that now is not the time to consider exiting.” While short-term volatility may persist, the absence of overheated market conditions sets the stage for a potentially healthier bull market in the coming weeks.