Seeking the potential for even greater returns than with the largest, most established crypto assets, investors in this space continue to explore opportunities among newly-issued cryptos like these listed on Binance. However, for bona fide needle-mover gains, perhaps crypto investors don’t always have to dive deep into riskier, less certain waters in the cryptocurrency market. That is, there may be the opportunity for outsized gains, in the cryptocurrency that started it all, Bitcoin.
Based on one key technical indicator, BTC may be poised to experience a breakout in price in the near-future. That’s not all. Other indicators, both technical and non-technical in nature, point to higher prices ahead.
Even if future rallies for Bitcoin prove to be less substantial than some of the epic rallies experienced in the past, these could still result in outsized gains, relative to current prices.
‘Risk Off’ Means ‘Game On’ for Bitcoin?
There are a plethora of Bitcoin-specific indicators that traders use to predict future price performance, but it may prove beneficial to pay close attention to one in particular right now. That would be the Bitcoin Risk-Off signal.
This indicator assesses correction risk, using on-chain and exchange data. On May 5, this signal fell to 23.7, levels not seen since over six years ago. That’s back when BTC traded for just $4,000. At present levels, the Bitcoin Risk-Off signal is in the blue zone.
Based on past performance, the odds of a bullish trend far outweigh the risk of a correction. Given that the last time this happened, BTC zoomed from $4,000 to $68,000, or 1,550%, over the span of around two years.
History may not necessarily repeat itself, but , this is not the only bullish sign currently out there. Taking these other factors into , when it comes to whether to invest in Bitcoin right now, “game on” may be an appropriate response.
Additional Bullish Signals
Alongside with the Risk-Off signal, recently another bullish technical signal for Bitcoin has been triggered. That would be the Macro Chain Index. The Macro Chain Index is a composite of both macro and on-chain metrics. According to Cointelegraph, late last month the Macro Chain index flashed a new buy signal, the first one issued since 2022.
On top of this pair of positive technical indicators, there’s another factor at play that strongly s a further move higher for Bitcoin. That would be the impact of institutional investment into Bitcoin creating a much higher floor for BTC prices.
Based on an infographic recently released by crypto research firm Ecoinometrics, 5.5% of the world’s Bitcoin is held by spot Bitcoin ETFs. Pretty impressive, when one considers that spot Bitcoin ETFs have only been trading for around a year, as it wasn’t until 2024 that the SEC gave the approval for their launch.
Also, 3.5% of global Bitcoin supply is now held by publicly-traded companies. MicroStrategy, perhaps the most high-profile public company known for accumulating Bitcoin, has continued to build up its position. Other public companies have followed suit, increasing their BTC allocation in a big way.
What Does This Mean for Prices Moving Forward?
To reiterate once more, don’t bank on a rapid 15.5x surge for Bitcoin anytime soon. Unlike back in 2019, this specific crypto asset is now far too large to likely experience such rapid price appreciation.
Yet while the pace of price appreciation has slowed down in line with scale, make no mistake. The potential for BTC to rise in value to a greater extent than other assets such as stocks remains ample. Progress with efforts to bring “regulatory clarity” to the U.S. crypto market, through the implementation of a clear-cut regulatory framework, will likely drive additional waves of institutional investment.
Institutional and individual investors alike may demonstrate greater interest and demand for Bitcoin in the years ahead, if confidence in BTC as an alternative reserve asset to the U.S. dollar keeps growing. This may occur, given the potential negative impact of President Trump’s recent tariff hikes on the U.S. Dollar’s status as the world’s primary reserve currency.
