Bitcoin miners have reduced selling activity to levels last seen in early 2024, signaling confidence in the asset’s value.
Data from Alphractal shows miner outflows relative to reserves hugging the lower band of a key metric, suggesting accumulation rather than distribution. Historically, such patterns precede periods of price stability or growth.
However, the derivatives market tells a contrasting story. High-leverage long positions between $100,000 and $110,000 have surged, creating fragility. A sudden price drop could trigger liquidations, amplifying volatility. Bitcoin currently trades at $104,336, down 0.27% intraday but holding above $100,000.
Bitcoin’s Relative Strength Index (RSI) sits near 75, indicating overbought conditions. The On-Balance Volume (OBV) metric has flattened, hinting at slowing buyer momentum. These factors suggest a potential cooldown, though bullish sentiment persists.
The liquidation heatmap reveals dense long positions near current prices. If Bitcoin retraces sharply, cascading liquidations could erase recent gains. Open Interest in derivatives has reached $66 billion, matching levels seen during late 2023’s $104,000 tests.
Short-term holders (STHs), defined as wallets holding Bitcoin for under 155 days, currently see unrealized profits of 10%. Similar conditions in late 2023 preceded a 28% price drop when STHs offloaded holdings, overwhelming buyer support.
Bitcoin now approaches resistance near $106,249, a level that previously led to profit-taking and a market reset. ETHNews nalysts question whether current prices reflect sustainable demand or a setup for another liquidity-driven correction.
