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- Bitcoin investor sentiment improves on Binance as emotional strength rebounds, signaling renewed confidence above $120,000.
- An analyst sees a potential test of $125,000–$130,000 if positive sentiment holds for the next two weeks.
The Bitcoin market is once again showing signs of a significant emotional recovery.
The latest data from on-chain analyst Arab Chain on CryptoQuant shows that since early October, the psychological indicator on Binance has begun to shift from fear to confidence.
The current reading stands at 1.47, up from the negative reading in mid-September, indicating growing investor confidence as the price breaks through its monthly moving average.
On the technical side, the indicator’s 7-day moving average is at 3.7, indicating a clearer psychological shift over the week.
However, the 14-day moving average remains at -3.91 and the 30-day moving average at -5.02, indicating that the market is still in a transitional phase. Arab Chain emphasizes that this pattern typically aligns with the start of a medium-term uptrend, especially if the price is able to hold above $120,000.
Bitcoin Price Action Aligns With Rising Confidence
The current situation is interpreted as a sign of the return of previously hesitant institutional buyers. They appear to be starting to capitalize on the weak selling liquidity on the exchange.
“Sudden increases in emotional strength typically occur at the start of a medium-term uptrend. As long as indicator volatility reduces around the moving average, the market has the potential to continue strengthening,” explained Arab Chain.
Price performance certainly supports this analysis. At the time of writing, Bitcoin was trading at about $121,585, down 0.31% in the last 24 hours, up 0.72% in the last 7 days, and up 8.96% in the last 30 days.
The BTC market cap reached $2.43 trillion with a daily spot volume of $8.11 billion. Meanwhile, open interest was recorded at $90.41 billion, indicating continued high derivatives activity. This data further confirms that the market is moving into a new phase of optimism.
Furthermore, investor behavior trends have also shown an interesting shift. Whale supply on Binance has decreased from 9.6% to 7.7% in the last 15 months. This indicates that market momentum is now driven more by retail investors and ETFs than solely by traditional whales.
Confidence Indicators Open Path Toward Higher Targets
Meanwhile, Bitcoin’s medium-term outlook remains a hot topic. If the psychological indicators observed by Arab Chain can remain in the positive zone for the next two weeks, the opportunity to test the $125,000 to $130,000 range is considered quite open.
“The market is currently healthy, with no signs of an excessive bubble,” said Arab Chain.
On the other hand, the CNF previously highlighted that gold has long been considered the safest traditional store of value, and Bitcoin is often called “digital gold.”
Investment firm VanEck even estimates that if Bitcoin reaches a level of trust and value equivalent to gold, its price could reach $644,000 in the future.
