Bitcoin investor demand points to rally to $118K
Bitcoin (BTC) price is poised for a potential breakout in June, driven by strong demand from US investors and reduced selling pressure from holders. The Coinbase Premium Index (CPI) has shown a positive trend for 20 days, indicating robust buying activity from institutional and retail investors. A significant net outflow of 8,742 BTC from Coinbase on May 26 suggests institutional demand, often followed by ETF inflows or corporate purchases. The Bitcoin Short-Term Holder SOPR has reached a local high, reflecting increased realized profits, yet remains below previous peak levels, indicating no excessive euphoria. Data shows limited inflows from long-term and short-term holders, with current inflows at 8,000 BTC, similar to milder corrections. Technically, Bitcoin is within a descending triangle pattern, with a breakout target of $118,000. A bullish divergence between price and the RSI suggests weakening bearish momentum, and a dip to $106,000-$104,000 could validate this divergence and trigger a breakout.
