Bitcoin eyes $120,000 price zone as exchange flows, leverage surge

Bitcoin’s (BTC) on-chain exercise has intensified because the asset consolidates close to $108,000, with $120,000 rising as the following main value zone of curiosity. 

Glassnode’s Might 28 report highlighted elevated investor profitability, rising accumulation, and sturdy trade flows. These situations resemble previous bull market peaks. 

Bitcoin hit a new all-time excessive of $111,000 earlier than pulling again to $107,000. It has since stabilized simply above that stage. 

Accumulation has surged, with Glassnode’s Accumulation Pattern Rating nearing its most worth of 1.0, suggesting traders are aggressively including to positions throughout this value discovery section. The market noticed related habits on the $70,000 and $107,000 highs in 2024.

Investor profitability can be heating up. The Relative Unrealized Revenue metric has reached a stage traditionally related to euphoric market situations. 

The report famous that solely 16% of buying and selling days see earnings at this stage. The Spent Output Revenue Ratio (SOPR) now signifies that the typical coin moved on-chain has captured a 16% acquire, rating among the many high 8% of all days traditionally.

Buying and selling exercise heating up

Alternate habits confirms the pattern, with roughly 33% of all Bitcoin quantity now flowing by way of centralized exchanges, up from earlier within the yr. 

The typical revenue on cash deposited into exchanges is $9,300, whereas the typical loss is simply $780, leading to a 12:1 profit-to-loss ratio that mirrors prior bull cycles.

Leverage can be constructing. Futures open curiosity has climbed from $36.8 billion to $55.6 billion (+51%) since April, whereas choices open curiosity surged to an all-time excessive of $46.2 billion, up $25.8 billion. 

Spot Bitcoin exchange-traded funds (ETFs) proceed to attract inflows above $300 million day by day, offering further buy-side momentum.

Not exhausted

Technically, Bitcoin trades properly above the 111-day shifting common at $91,800, the 200-day shifting common at $94,300, and the short-term holder price foundation at $95,900, reinforcing bullish momentum. 

On-chain pricing fashions place key resistance between $120,300 and $135,700. Traditionally, this vary has encompassed solely 17.5% of Bitcoin’s buying and selling historical past, typically serving because the higher restrict in periods of euphoria.

The report concluded that the market is heating up however has not but reached exhaustion. If momentum continues, the following check could happen on the $120,000 zone, offered investor demand can take in rising profit-taking stress.

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