TL;DR

BTCs price has been flying high recently, but one well-known analyst recommended that people seize the opportunity to make some profits. Strong inflows into spot ETFs and negative exchange netflows support the thesis of a further upside, but Extreme Greed signals a rising risk of a reversal.

The Important Advice

Bitcoin (BTC) has taken center stage in the past few days, with its price exploding to a new all-time high of almost $112,000. The historic peak occurred on May 22, a date known in the crypto space as BTC Pizza Day. 

Despite retracing below $109,000 following the threat of a renewed tariff war between the USA and the European Union (EU), the primary cryptocurrency remains well in the green on a weekly scale.

That said, some analysts, such as the X user Merlijn The Trader, urged investors to take some profits and not only screenshot the historical charts as they wont pay the bills. He also claimed that the legendary gains could turn into legendary regrets for those who miss the current opportunity. 

Contrary to his guidance, the analyst suggested that BTC had much more fuel left before transitioning into a bear market. He envisioned a pump to as high as $200,000 in the following months as the asset prepares to enter a distribution phase. 

Other popular industry participants who touched upon the matter recently include Rekt Capital and KALEO. The former argued that BTCs bull market progress has been 86% completed, meaning the potential point of exhaustion is not far away. The latter was more optimistic, simply claiming that a target of over $200,000 is a magnet.

Observing Some Essential Indicators

There are numerous factors suggesting that the asset has much more room for growth in the short term. Lets focus on the inflows into spot BTC ETFs, for instance.

Data compiled from SoSoValue shows that over the past several days, more capital has entered these funds than exited, indicating growing investor confidence. The total netflow for May 22 alone stands at over $934 million, whereas the last day when the netflow dropped below zero was on May 13. 

We move on to the exchange netflows, which have been predominantly negative in the last month. This signals a shifting trend from centralized platforms toward self-custody methods, which could be viewed as a bullish element since it reduces the immediate selling pressure.

BTC Exchange Netflow, Source: CryptoQuant Additionally, CryptoQuant analysts examined the Spot Taker Cumulative Volume Delta (CVD) over a 90-day window to estimate that taker buy orders have once again outpaced sell orders. This indicator measures the balance between aggressive buyers and sellers, and its recent shift indicates that buying pressure is starting to build again.

However, its not all sunshine and rainbows. Earlier today, the popular BTC Fear and Greed Index soared to Extreme Greed territory for the first time since January. The metric analyzes various factors, including price swings, social media activity, and survey responses, to gauge the current investor sentiment toward the leading cryptocurrency.

BTC Fear and Greed, Source: alternative.me While the mostly optimistic mood may seem promising, its important to remember that the crypto market is highly unpredictable, and prices often move in the opposite direction of what most expect. People should also keep in mind Warren Buffetts famous advice, who once said they should be fearful when others are greedy and to be greedy only when others are fearful.