Bitcoin’s cost towards document highs has stalled, with sellers regaining management as profit-taking stress builds regardless of indicators of renewed market momentum.
Abstract
- Bitcoin retreated to $118,782 after nearing its $122,867 all-time excessive on Aug. 11.
- Glassnode knowledge exhibits rising momentum throughout spot, futures, choices, and on-chain exercise, but additionally elevated profit-taking threat.
- Technicals level to sturdy $116K–$117K assist, with a detailed above $122.5K wanted for contemporary highs.
Bitcoin’s (BTC) rally towards a brand new all-time excessive faltered after touching $122,232 on Aug. 11, with the value retreating to $118,782 at press time, down about 3% up to now 24 hours. The transfer got here after a short restoration from the $112,000 zone, which had pushed BTC again close to document territory earlier than sellers reasserted stress.
Glassnode: BTC momentum returns, however threat stays
In line with Glassnode’s Aug. 11 evaluation, market momentum is bettering, however there’s a rising threat of profit-taking. Within the spot market, the relative energy index rose from 41.5 to 47.5, bouncing from oversold circumstances.
Spot cumulative quantity delta shifted from heavy promoting to near-neutral territory, whereas spot buying and selling quantity fell 22% to $5.7 billion, suggesting the current rebound has not but attracted broad participation.
In derivatives, futures open curiosity eased to $44.1 billion, with long-side funding charges nonetheless elevated however barely decrease than final week. Perpetual cumulative quantity delta improved to -$0.2 billion, indicating extra aggressive buy-side exercise.
You may additionally like: Is institutional demand preserving Bitcoin dominance excessive and delaying altseason?
Choices open curiosity elevated 6.7% to $42.4 billion, whereas the volatility unfold contracted sharply to 10.45%, close to its decrease band, an indication that merchants could also be pricing in too little volatility. The 25-delta skew eased however stayed above its excessive band, reflecting continued demand for draw back hedges.
Trade-traded fund flows additionally improved, with outflows shrinking by greater than half, though buying and selling volumes dropped 27.7% to $13.7 billion. ETF MVRV rose to 2.43, which means funds are holding vital unrealized features, which might encourage promoting.
Glassnode concluded that the market has shifted from vendor exhaustion to a powerful rebound close to current highs. Nevertheless, it warned that elevated profitability, with 94.1% of provide in revenue, mixed with a realized revenue/loss ratio of 1.9, suggests profit-taking might shortly reverse sentiment.
Bitcoin technical evaluation
Bitcoin’s every day chart exhibits value retreating from the higher Bollinger Band after testing $122,000 resistance. Whereas momentum and MACD indicators level to a purchase, indicating underlying assist, the RSI is at 58, which is impartial however leaning towards bullish territory.
Bitcoin every day chart. Credit score: crypto.information
The entire short-term transferring averages (10, 20, 30, and 50-day) are nonetheless above $116,000 and in a bullish formation, supporting the $116,000–$117,000 vary as an important assist. A detailed above $122,500 might pave the best way for brand new highs, whereas a break beneath this vary may see Bitcoin return in the direction of the $112,000 mark.
Learn extra: Bitcoin eyes $135k as every day construction holds sturdy above $119k assist
