Bitcoin eyes $120,000 worth zone as change 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 worth zone of curiosity. 

Glassnode’s Could 28 report highlighted elevated investor profitability, rising accumulation, and strong change flows. These circumstances 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 buyers are aggressively including to positions throughout this worth discovery section. The market noticed related habits on the $70,000 and $107,000 highs in 2024.

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

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 common 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

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

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

Leverage can also 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 each day, offering extra buy-side momentum.

Not exhausted

Technically, Bitcoin trades properly above the 111-day transferring common at $91,800, the 200-day transferring common at $94,300, and the short-term holder value 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 during times of euphoria.

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

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