Bitcoin’s accusations of record highs are stagnating, and sellers are regaining control as pressure is built to earn profits despite the renewed market momentum.
summary
- Bitcoin retreated to $118,782 after approaching an all-time high of $122,867 on August 11th.
- GlassNode data shows momentum is gaining in spots, futures, options and overall activity on the chain, but also shows an increase in risk of profitability.
- Technical points out strong support from $1,16,000 to $117,000, with fresh highs above $122.5K.
Bitcoin (BTC) has gathered to a new all-time high after touching $122,232 on August 11, bringing the price to $118,782 at press, down about 3% over the past 24 hours. The move came after a brief recovery from the $112,000 zone, which pushed BTC back closer to recording area before sellers could reaffirm the pressure.
GlassNode: BTC Momentum returns, but risk remains
Glassnode’s August 11 analysis shows that while the market momentum is improving, there is an increased risk of profitability. In the spot market, the relative strength index rose from 41.5 to 47.5, bounced back from being oversold.
Spot’s cumulative volume delta shifted from big sales to neutral territory, but spot trading volume fell 22% to $5.7 billion, suggesting that recent rebounds still haven’t attracted widespread participation.
In derivatives, open interest on futures was eased to $44.1 billion, and long-standing funding rates remained rising, but slightly lower than last week. The permanent cumulative volume delta has been improved to $0.20 million, indicating more aggressive buy-side activity.
You might like it too: Is institutional demand increasing control of Bitcoin and delaying the alto season?
Open interest on options rose 6.7% to $42.4 billion, but volatility quickly signed to 10.45% near the low band. The skew at the 25-delta was eased, but remained above the high band, reflecting on the ongoing demand for downside hedges.
The flow of funds trading on exchanges has also improved, with outflows shrinking by more than half, but trading volumes fell 27.7% to $13.7 billion. ETF MVRV has risen to 2.43. That is, the funds hold significant unrealized profits that could drive sales.
GlassNode concluded that the market has shifted from seller fatigue to strong rebounds near the recent highs. However, combining a realized profit/loss ratio of 94.1% of profit supply with a 1.9 realized profit/loss ratio, warned that a rise in profitability suggests that profits could quickly overturn feelings.
Bitcoin Technical Analysis
Bitcoin’s daily chart shows the price falling back from the upper Bollinger band after testing the $122,000 resistance. Momentum and MACD indicators refer to shopping that shows fundamental support, but RSI is 58. This is neutral, but leaning towards bullish territory.
Bitcoin Daily Chart. Credit: crypto.news
The short-term moving averages (10, 20, 30, and 50 days) all exceed $116,000, and in bullish formations it supports the $116,000-$117,000 range as key support. A close to $122,500 could pave the way for new highs, but breaks below this range will allow Bitcoin to return to $112,000.
read more: Bitcoin’s eyes $135K as daily structures hold strong support over $119,000
