Bitcoin price broke into unknown territory, recording an all-time high above $124,000. Bitcoin has now risen about 8% over the past week.
This move comes with a major on-chain shift in favor of the bulls. Aggressive buying has been built up in perpetual futures for several days. But this time, bulls may target a level above the current all-time high area, as a major development shifts in favor of Bitcoin's price movement.
Miner reserves are declining as selling pressure eases
Earlier this month, miner reserves increased from 1,806,790 Bitcoin on August 2 to 1,808,488 Bitcoin on August 10. This raised the risk of a supply wave hitting the market. This increase reflected higher selling pressure from miners - a move often seen as a barrier to rallies.
But with the Bitcoin price trying to break out, reserves fell to 1,806,630 Bitcoin and have remained stable since then, indicating that the immediate selling risk has diminished. This retreat in development removed the barrier for buyers to push the market higher without heavy liquidation from miners.
Trader buying volume shows that bulls are ready
Trader buying volume; the total nominal value of market buy orders that lift liquidity from the sell side, increased to $14.31 billion on August 11 during a failed breakout attempt.
Here's the main part - for a market buy order to be executed, it must 'hit' existing sell orders in the order book. So even if they are buying, they are doing it immediately at the seller's price, without waiting for a dip or a better deal.
In other words, high trader buying volume means aggressive buyers are removing liquidity from the sell side of the order book - they are quickly removing sellers, which can push the price up if the pressure continues.
This metric has remained high at $12.24 billion, indicating that traders are still chasing the price on demand rather than waiting for dips.
Historically, such sustained buying aggression often precedes successful breakouts. In this case, it was less about whether the rally would reach new levels and more about when it would happen.
Key Bitcoin price levels to watch
With momentum now significantly shifting towards the bulls, the immediate test lies at $124,300, which stands as the last major barrier before higher targets come into play.
A clean break and daily close above this level could open a price path for Bitcoin towards $127,600, aligning with the 1.0 Fibonacci extension and representing the next major target for the rally.
On the flip side, if Bitcoin fails to stay above $121,600, especially with a recovery in miner reserves coinciding, the bullish setup may face a sharper pullback.