Cryptocurrency analysis firm Glassnode has reported in a new report titled “October Rally” that Bitcoin has risen above the $114,000-$117,000 supply zone and to $126,000 due to strong market momentum.
The company claimed that the rise was due to record-high ETF inflows and accumulation trends among mid-sized investors.
According to the report, 97% of the supply is currently profitable. Glassnode noted that while these levels typically precede a period of consolidation, profit taking is currently limited, suggesting regular rotation in the market rather than “distributive pressure.”
The company said the $117,000 supply cluster has turned into a support zone, with small and medium-sized investors continuing to buy, while larger investors are realizing the gains.
Bitcoin’s rise to new highs was fueled by weekly ETF inflows of over $2.2 billion and a surge in spot demand. This set new records for both prices and market activity, with spot trading volumes reaching their highest levels this year.
Glassnode pointed out that the open interest rate and funding rate in the derivatives market, especially late entry long positions, have increased, disrupting the market balance. This, along with recent adjustments, could help rebalance the position.
It was pointed out that in the options market, implied volatility has increased, skew ratios have become neutral, and trades with many calls have intensified. The company interpreted this as a sign of strong momentum, but warned that overly optimistic positioning could increase volatility in the short term.
Glassnode said on-chain data shows that around 190,000 BTC were traded in the $117,000 to $120,000 range, and this level could act as a re-demand zone in case of a potential decline.
Glassnode said Bitcoin’s breakout of the $114,000-$117,000 range and rise to $126,000 points to structural strength in the market, but increased leverage and concentration of long positions could create vulnerabilities in the short term.
*This is not investment advice.
