After a recent rally nearly all Bitcoin supply has been profitable, but the rising leverage is causing concern. “crowded call positioning” Onchain Analytics suggests that there is a growing risk of short-term instability.
As of today, Bitcoin has reached a 97% (BTCThe supply of goods is at profit. reported Glassnode is a blockchain analytics company.
“Building on the accumulation trend, Bitcoin’s rally to a new all-time high has lifted nearly all circulating supply back into profit.”
The consolidation process is often preceded by a rise in profits. “suggesting an orderly rotation rather than distribution pressure,” Analysts added.
Investors have taken profits gradually and reallocated their holdings, rather than panic-selling in masse. It’s typical for an healthy bull market Profit-taking must be balanced with new demand.
Possible pullback of $117,000
Glassnode is used as a “Cost Basis Distribution Heatmap” It is important to note the structure support. This was more limited in between $121,000 – $120,000 but stronger at $117,000 where around 190 000 BTC last purchased.
“While price discovery phases inherently carry the risk of exhaustion, a potential pullback into this region could invite renewed demand as recent buyers defend profitable entry zones.”
It is important to pay attention to the zone of $117,000 “stabilization and a resurgence of momentum.”
Volumes of ETFs and Futures are surging
Glassnode is also observed “surging volumes confirm strong institutional demand” Bitcoin Futures and spot ETF marketsBut rising rates of borrowing and financing could “introduce short-term fragility.”
The US Spot Bitcoin Exchange Traded Funds (ETFs) have received more than $2 billion of inflows. second-highest inflow dayIn the first 3 days of this coming week according CoinGlass is a great way to collect coins.
Related: Here’s the real reason the 4-year Bitcoin cycle is dead: Arthur Hayes
Onchain’s weekly signals present a overview of the week. “robust yet maturing uptrend, one that remains supported but increasingly sensitive to profit-taking and leverage resets as Bitcoin navigates price discovery,” Analysts concluded.
BTC’s prices are down from their high of $124,000. They were just below that at the moment of this writing.
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Source: cointelegraph.com
