Bitcoin (BTC) price may benefit from whale inflows as demand returns

It's a new week for the market and investors are eager to see whether Bitcoin price will stick to a recovery trajectory.

Bitcoin price slipped on Sunday, putting a hold on its rebound from the $80,000 support level.

The RSI and MFI also confirmed a demand cool-down, signaling that BTC may struggle to push back above $90,000.

Bitcoin price slipped by 1.79% in the last 24 hours, putting a hold on its rebound from the $80,000 support level.

The RSI and MFI also confirmed a demand cool-down, signaling that BTC could struggle to push back above $90,000.

At press time, Bitcoin was trading at the $83,718 price point.

After kicking off last week on a bearish leg, Bitcoin price managed to close the week in the green for the second time since 30 March.

The world’s leading cryptocurrency gained 2.29% from its weekly opening to closing price.

Bitcoin's weekly performance highlighted the return of demand after a pause on tariff wars and uncertainty brought a potential for short-term profit-taking as signaled by the latest fear and greed sentiment.

The crypto fear and greed index was at 45, still in fear territory.

However, at the same time, smart money, or whale activity, registered a massive spike between Wednesday and Friday, as a strong demand wave that contributed to Bitcoin's bullish performance.

But large holder net flows cooled down on Saturday, signaling that it was a short-term burst of whale activity, which may explain the downside in the last 24 hours as some traders took profits.

Bitcoin balance by time held coincided with the aforementioned Darkopost analysis.

IntoTheblock data revealed that HODLer (1+ year) holdings were at 12.37 million BTC, the same level as they started April with.

Cruiser balances dipped slightly, going from 6.23 million BTC to 6.2 million BTC, while trader balances were up from 1.27 million coins to 1.3 million coins, signaling that swing traders may have taken profits while short-term traders anticipate more upside.

The fact that long-term holders have maintained their balances in the last two weeks could also signify growing confidence after Bitcoin's heavy discount since its January peak.

This could indicate that long-term HODLers do not expect Bitcoin price to fall much lower from its recent lows.

Meanwhile, Bitcoin dominance continued ticking up, indicating that it stands to benefit the most in liquidity inflows make a strong comeback in crypto.

As of press time, Bitcoin dominance was at 69.8 and had risen by 0.35%. This signaled that traders were pivoting back into the major cryptocurrency in hopes of catching the next leg of the bull market.

At the same time, major altcoins like Ethereum, Binance Coin, and Cardano also saw slight gains in the past 24 hours.