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

Bitcoin’s (BTC) on-chain enactment has intensified arsenic the plus consolidates adjacent $108,000, with $120,000 emerging arsenic the adjacent large terms portion of interest. 

Glassnode’s May 28 report highlighted elevated capitalist profitability, rising accumulation, and robust speech flows. These conditions lucifer past bull marketplace peaks. 

Bitcoin deed a new all-time precocious of $111,000 earlier pulling backmost to $107,000. It has since stabilized conscionable supra that level. 

Accumulation has surged, with Glassnode’s Accumulation Trend Score nearing its maximum worth of 1.0, suggesting investors are aggressively adding to positions during this terms find phase. The marketplace observed akin behaviour astatine the $70,000 and $107,000 highs successful 2024.

Investor profitability is besides heating up. The Relative Unrealized Profit metric has reached a level historically associated with euphoric marketplace conditions. 

The study noted that lone 16% of trading days spot profits astatine this level. The Spent Output Profit Ratio (SOPR) present indicates that the mean coin moved on-chain has captured a 16% gain, ranking among the apical 8% of each days historically.

Trading enactment heating up

Exchange behaviour confirms the trend, with astir 33% of each Bitcoin measurement present flowing done centralized exchanges, up from earlier successful the year. 

The mean nett connected coins deposited into exchanges is $9,300, portion the mean nonaccomplishment is conscionable $780, resulting successful a 12:1 profit-to-loss ratio that mirrors anterior bull cycles.

Leverage is besides building. Futures unfastened involvement has climbed from $36.8 cardinal to $55.6 cardinal (+51%) since April, portion options unfastened involvement surged to an all-time precocious of $46.2 billion, up $25.8 billion. 

Spot Bitcoin exchange-traded funds (ETFs) proceed to gully inflows supra $300 cardinal daily, providing further buy-side momentum.

Not exhausted

Technically, Bitcoin trades good supra the 111-day moving mean astatine $91,800, the 200-day moving mean astatine $94,300, and the short-term holder outgo ground astatine $95,900, reinforcing bullish momentum. 

On-chain pricing models spot cardinal absorption betwixt $120,300 and $135,700. Historically, this scope has encompassed lone 17.5% of Bitcoin’s trading history, often serving arsenic the precocious bounds during periods of euphoria.

The study concluded that the marketplace is heating up but has not yet reached exhaustion. If momentum continues, the adjacent trial whitethorn hap astatine the $120,000 zone, provided capitalist request tin sorb rising profit-taking pressure.

The station Bitcoin eyes $120,000 terms portion arsenic speech flows, leverage surge appeared archetypal connected CryptoSlate.