SOPR shows short-term holders have not realized strong profits yet, indicating Bitcoin’s rally may continue without heavy selling pressure.
Despite rising open interest, funding rates remain neutral, showing a lack of high-leverage positions and controlled bullish sentiment.
Market structure remains healthy, with no signs of euphoria or overheating, supporting the potential for further price appreciation.
Bitcoin has surged to a new all-time high of nearly $120,000, but market indicators suggest the rally may still have more room to run.
Short-Term Holders Yet to Realize High Profits
CryptoQuant data reveals short-term Bitcoin holders have not begun heavy profit-taking. According to analyst @cryptometugce, this group—defined as those holding for less than 155 days—bought Bitcoin at an average of around $100,000.
With the current price near $120,000, their gains are roughly 17–18%. However, this is not yet triggering major sell-offs. The SOPR (Spent Output Profit Ratio) orange line remains below the red zone. That red zone is traditionally associated with strong profit realization activity, but current levels suggest holders are still waiting for higher gains.
This behavior indicates reduced selling pressure, helping support the continuation of the Bitcoin run. The current sentiment remains calm, reducing the chances of an overheated market in the short term.
Derivatives Market Reflects Cool Sentiment
Open Interest in Bitcoin futures is rising, suggesting more capital is entering the market. However, funding rates stay near neutral or only slightly positive. This shows that traders are not using excessive leverage, which often indicates fear of missing out (FOMO).
When funding rates spike rapidly, it signals aggressive bullish positioning. The current neutral readings imply that market participants remain cautious. As a result, despite the rapid price increase, the broader sentiment does not appear euphoric.
The lack of extreme bullish behavior in derivatives markets helps prevent abrupt corrections. This adds another layer of support to the idea that the Bitcoin run is not yet peaking.
Market Structure Still Supports Further Upside
@cryptoquant_com highlighted this in a recent tweet, stating that the market "doesn’t show signs of being overheated with excessive selling." The combination of stable SOPR levels and modest funding rates suggests that Bitcoin’s momentum is still building.
Although prices have reached new all-time highs, market activity remains measured. This structure offers room for the Bitcoin run to extend further before encountering stronger resistance from profit-taking or leveraged positions.
If conditions persist, analysts may continue observing this cool yet advancing rally.
The post Why Bitcoin’s $118K Surge Isn’t the Peak: On-Chain Metrics Say More Room Ahead appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
