climbed from $117,000 to $124,000 since early October, stabilizing above $120,000 after touching an all-time high near $126,000. This movement reflects a broader recovery, driven by improved liquidity metrics. Analysts observe a transition from bearish to neutral pressures in derivatives.
Understanding the Rebound
bitcoin's action shows resilience, holding key support levels amid minor corrections. Controlled profit-taking follows the recent peak, avoiding panic sales.
According to Swissblock, this profit-taking remains controlled, not panic-driven, setting up for potential upside.
market data from indicates net buying pressure exceeding $500 million on multiple days.
This suggests genuine institutional participation in cefi platforms.
Key Liquidity Indicators
CryptoQuant reports net taker volume recovering from -$400 million to neutral. This shift mirrors April's pattern, which led to a 51% price increase over 13 weeks.
The imbalance ratio hit 0.23, with buy orders 23% higher than sells.
Z-Score reached 0.79, signaling above-average buying in the market.
Daily trading volumes surged to levels unseen since July, underscoring real liquidity.
Glassnode notes 97% of bitcoin supply now in profit, marking late-stage bull conditions without exhaustion.
Institutional and CeFi Drivers
U.S. spot bitcoin ETFs attracted $2.2 billion in inflows last week alone. This institutional demand absorbs supply, bolstering the rebound.
Renewed on-chain accumulation by mid-tier holders offsets whale profit-taking.
In cefi, futures trade at premiums, with basis structures favoring bullish trends.
Binance's data reinforces this, showing robust confidence among spot and institutional traders.
According to Glassnode, mid-tier wallets with 10 to 1,000 BTC drive the organic accumulation phase.
Web3 and On-Chain Trends
metrics reveal steady accumulation, with smaller holders increasing balances. This decentralized activity complements cefi inflows, enhancing overall market depth.
On-chain support exists at $117,000 to $120,000, where 190,000 BTC last transacted.
Funding rates above 8% indicate leveraged positions, but realized profits stay controlled.
This balance prevents overheating in the Web3 ecosystem.
Axel Adler Jr. estimates a 70% chance of new highs within two weeks, citing improving macro conditions.
Analyst Insights and Risks
Joao Wedson of Alphractal emphasizes that disciplined metrics improve decision accuracy in volatile markets.
Swissblock warns that holding above $120,000 to $121,000 confirms a healthy cooling phase for continuation.
Potential pullbacks to $120,000 offer accumulation opportunities, per market observers.
Rising open interest heightens short-term fragility, yet institutional flows provide stability.
CryptoQuant highlights a true shift in buying and selling dominance, supporting sustained momentum.
Broader market Implications
The debasement trade, amid U.S. government shutdown, spurs risk assets like bitcoin higher.
Equities and crypto align in this rally, with bitcoin up over 30% year-to-date.
's on-chain data integrates with cefi structures, creating a hybrid market environment.
Traders monitor $114,000 liquidity pockets for any retests before upside resumes.
Glassnode describes conditions as robust but maturing, with ETF persistence key to extension.
This rebound illustrates the crypto market's evolution, merging cefi efficiency with decentralization for resilient growth. Investors gain from these insights to position strategically amid trends.
