- According to Binance data, Bitcoin has shifted past the accumulation phase with solid support over $110,000 and potential for further expansion.
- The Power Law Divergence indicator at 0.87 suggests Bitcoin continues to be undervalued, creating a optimal environment for institutional accumulation and cycle expansion.
- The current state of liquidity is stable, ETF inflows are rising and prices are still showing strength. These suggest that Bitcoin may be ready for a bullish up trend to new highs.
Binance prices show Bitcoin is trading above $110k, meaning the potential upward trend may have already started. Various metrics show the market is moving towards an expansion out of the accumulation phase suggesting confidence in the future of Bitcoin (investors are investing again!).
Bitcoin Trading Above $110,000 Shows Renewed Market Strength
The latest data on Binance, the most popular Bitcoin exchange platform, indicate that Bitcoin is holding at over $110,000. This price range indicates that the cryptocurrency is already in the steady consolidation stage. Market participants interpret this as a foundation for a potential expansion period.
The Power Law Divergence indicator remains steady around 0.87, supporting the view that Bitcoin’s current valuation is below its long-term theoretical path. This ratio indicates a phase of relative undervaluation, where long-term investors often accumulate positions. Historical data shows such periods often precede stronger price momentum.
Analysts note that Bitcoin’s movement above this psychological threshold reinforces confidence among institutional traders. With trading activity concentrated near this level, liquidity conditions remain favorable. A stable price above $110,000 also positions Bitcoin to attract increased participation from ETF markets and broader institutional demand.
Power Law Divergence Reflects Early-Stage Bullish Conditions
The Power Law Divergence curve illustrates that Bitcoin’s market price is still trailing below the logarithmic trajectory of its long-term growth. This indicates a lag in market valuation relative to projected expansion trends. Historically, such periods often provide strategic accumulation opportunities.
At a reading of approximately 0.87, the metric suggests Bitcoin remains in a zone where large investors typically enter. This level represents a transitional period between market consolidation and early bullish development. Traders interpret this phase as an equilibrium before broader price acceleration begins.
This trend is consistent with the previous Bitcoin cycles, in which undervaluation thrived in major rallies. Institutional investors are watching these indicators, and the accumulation of value in these zones represents a solid basis for sustained growth over the next few months.
Market Indicators Point Toward New Expansion Potential
With Bitcoin holding above $110,000 and Power Law Divergence below 1.0, Binance data signals a balanced market structure. The cryptocurrency appears to be preparing for an expansion phase as liquidity continues to improve.
The days-into-cycle metric supports the notion that Bitcoin has moved out of its accumulation phase. Traditionally, this transition indicates the beginning of the pricing upward formation, most often increased volatility, and trade activity.
Should Bitcoin remain in the price range while the ETF accounts secure inflows, then market analysts foresee a bullish acceleration in movements that would leave Bitcoin accelerating towards a new all-time high confirming a new fresh upward cycle.
