Bitcoin [BTC] broke through the $111,000 level on the price chart, setting an all-time high of $1.118 million.
About 2% higher than the previous peak price of $1.096 million (the high set in mid-January), bullish traders are now reluctant to believe a local peak may emerge.
However, this may be somewhat similar to the situation in December. In an article by CryptoQuant Insights, user Amr Taha pointed out that estimated leverage has risen to 0.2.
This is similar to the level the indicator reached in December 2024.
Binance's open interest is also close to December levels. High open interest reflects strong bullish sentiment but also means that volatility may be higher in the short term.
It is worth noting that higher speculative interest often amplifies both upside and pullbacks.
Bitcoin hits an all-time high, with signs of selling and profit-taking in the market.
Binance's net inflow data shows that 4,435 BTC flowed into the exchange on May 22. This is the largest positive net inflow since April 7. With prices hitting new highs, these positive inflows indicate impending selling pressure.
However, the 30-day moving average of Binance's net flow data shows -1,318 BTC. These deep negative values were surpassed back in January 2023, which was quite some time ago. At that time, Bitcoin had already started to recover from the bear market but had not yet entered a bull market.
Therefore, although the net inflow of funds is positive, long-term holders have no reason to panic and sell immediately.
The adjusted SOPR (aSOPR) indicator is used to measure the average profit or loss of all on-chain tokens. Its 7-day moving average reading above 1 indicates that more investors are selling for profit.
However, the 7-day moving average has not approached the highs of March 2024 or November 2024, even though it is moving towards that level. Therefore, if historical patterns hold, Bitcoin may have more upside potential in the current rebound.
Long-term investors should keep an eye on signals indicating a long-term market top. An increase in open interest means traders and short-term holders should expect market volatility and be prepared to take profits.