TLDR:
Surged On-Chain Bitcoin Metrics Leave Price Hovering Below $105K: What's Ahead?
Table of Contents
Toggle* Bitcoin witnessed a surge of 556,830 new wallets on May 29, a peak since the December 2023 chaos.* Over 241,000 BTC buzzed through the network on June 2, reaching heights not seen since the December 2024 madness.* Altcoins plummeted more than 10% last week while Bitcoin only dipped by 3%.* BTC forms a descending triangle, signaling a touch of caution in the short-term and promising potential in the long-run.
Amidst Bitcoin's struggle to breach the $105,000 mark, the network has seen an increase in activity. Amidst this hustle, the number of new wallets and Bitcoin circulation have hit multi-month highs.
Despite this pleasant uptick, the cryptocurrency continues to slide within a bounded range. The altcoins have also taken a tumble, offering no distinct leads or sector-based rallies. This unpredictable environment has nudged analysts to prepare for near-term turmoil while keeping an eye on long-term optimism.
On-Chain Mania Suggests Solid Foundations
Santiment reported a spike in Bitcoin's network engagement towards the end of May and early June. On May 29, a whopping 556,830 new wallets entered the scene, the highest since the December 2023 scuffle. On June 2, over 241,000 BTC were in motion, a sight not seen since December 2024.
These intriguing figures hint at escalating user engagement and potential demand. Back in April 2025, Santiment noticed a 2.6% surge in whale wallets that contained between 1,000 to 10,000 BTC. Experts believe these trends indicate underlying support for Bitcoin, even as the short-term prices remain unpredictable.
While Bitcoin has been relatively stable over the past week, altcoins have not been so fortunate. According to Daan Crypto Trades, the alternate coins experienced a steep dive last week, with some crashing by more than 10%. In contrast, Bitcoin only suffered minor losses.
This contrasting performance is a clear reflection of a shaky altcoin market. Daan recommends steering clear of active trading given the absence of clear narratives or strong-performing sectors. The overall sentiment is one of uncertainty, as traders await the emergence of distinct sector-wide movements.
Technical Appearance Offers Mixed Outlook for Bitcoin Price
Technical clues supply a mixed perspective on Bitcoin's price direction in the short-term. Analyst Jackis pointed towards the possibility of a short-term plunge, attributing it to a descending triangle formation on Bitcoin's chart. He noted historical support zones around €65,000 that could provide stability.
Despite this bearish prediction, Jackis remains hopeful about a post-summer rally. Community discussions have also hinted at a bearish RSI trend across major coins, frequently seen before a shift towards altcoins. If Bitcoin loses momentum, its dominance might face pressure, but this shift remains to be confirmed.
At the time of writing, Bitcoin's value stands at $104,638, as per CoinGecko, dipping 0.80% in the past 24 hours. Over the last seven days, the BTC price has seen a drop of 3.14%. Trading volume remains robust, crossing $24 billion, indicating active market participation despite the stall.
As Bitcoin hovers below $105,000, attention now shifts to whether escalating on-chain activity will convert into upward price action. Analysts exhibit caution but are keen on identifying signs of renewed momentum as summer approaches.
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- On-Chain Activity:
- Supply & Demand: With 95% of Bitcoin mined and only 5% of the world's inhabitants owning it, a notable imbalance exists, which may push prices higher as adoption increases.
- Whale Accumulation: Continued hoarding by large investors (whales) could fortify higher price levels if the trend persists.
- Technical Analysis:
- Price Targets: Some forecasts predict Bitcoin could reach €120,000 if it sustains its current momentum above €108,000.
- Bullish Scenarios: Predictions range from €115,000 to €137,000 by the end of June, supported by various analyses and models.
- Market Trends:
- Institutional Interest: Growing institutional appetite and macroeconomic factors are viewed as crucial drivers for Bitcoin's potential price hike.
- Economic and Policy Factors: Favorable economic indicators and favorable crypto regulations are contributing to the bullish outlook.
- Long-Term Projections: Some analysts predict Bitcoin could surge to €150,000 to €250,000 by the end of 2025, driven by global liquidity expansion and anticipation of a dovish Federal Reserve stance.
Key Predictions:
- Short-Term: Prices could reach €120,000 to €137,000 by June.
- Long-Term: Predictions for the end of 2025 range from €150,000 to over €200,000.
- Speculative Highs: A long-shot options trade suggests Bitcoin could reach as high as €300,000 by June, but this is considered highly speculative.
In summary, while predictions vary, the general sentiment leans towards Bitcoin experiencing a bullish 2025, driven by resilient market fundamentals and supporting economic conditions.
Bitcoin's increasing activity on the network, as indicated by the surge of new wallets and increased circulation, signifies the role of technology in propelling the cryptocurrency. This technological advancement helps create new opportunities, suggesting potential demand and underlying support for Bitcoin.
On the other hand, the rising number of new wallets and increased Bitcoin circulation underscores the impact of technology on the Bitcoin ecosystem, supporting the market's positive sentiment towards this digital currency.
