Bitcoin defends $120,000 amid profit driven sell pressure, leverage buildup

Bitcoin (BTC) state, following its new all-time high of $126,000, is dealing with assessments from profit-taking and elevated leverage.

As Glassnode reported on Oct. 8, mid-tier holders which have accrued between 10 and 1,000 BTC have driven demand over latest weeks, whereas whale distribution has eased since earlier this 12 months.

The Trend Accumulation Score reveals that this alignment amongst smaller entities provides structural depth to the advance. Nearly all circulating provide now sits in profit, although restricted assist exists between $120,000 and $121,000.

A stronger cluster close to $117,000 holds roughly 190,000 BTC, marking a zone the place patrons could defend positions if costs retreat.

The Sell-Side Risk Ratio rebounded from its decrease certain, confirming buyers’ lock-in beneficial properties as Bitcoin enters a interval of value discovery.

The metric stays properly beneath historic cycle peaks, indicating managed promoting per a wholesome bull part somewhat than exhaustion.

Demand stays robust

According to Farside Investors information, US spot ETF inflows exceeded $4.8 billion so far in October, matching the strongest institutional shopping for since April.

Daily spot quantity climbed to ranges unseen since spring, confirming renewed participation and deeper liquidity behind the breakout.

Futures open curiosity reached new highs as Bitcoin surged previous $120,000, whereas annualized funding charges rose above 8%.

This speedy growth in leveraged lengthy positions creates setups that traditionally resolve by means of liquidations or temporary cooling phases.

Short-term volatility typically spikes when leverage builds at this tempo, permitting extra positioning to reset earlier than sustainable tendencies resume.

Options level to volatility

Options markets point out that implied volatility has elevated throughout all maturities, with at-the-money volatility rising by roughly one level, whereas one-week contracts have surged from 31.75% to 36.01%.

The 25-delta skew narrowed 21 factors in below per week, shifting from deeply bearish to just about impartial as merchants rotated from defensive hedging to opportunistic name shopping for.

Dealers keep lengthy gamma positions round present strikes into month-end expiry, a construction that amplifies two-way value stress.

Call exercise dominates latest flows, although each patrons and sellers have interaction at scale by means of spreads and coated methods.

With skew now impartial and implied volatility elevated, bullish positioning has turn out to be costlier than per week prior, suggesting crowded sentiment that would set off sharp swings.

Bitcoin’s construction stays constructive with mid-tier accumulation, robust ETF demand, and key assist close to $117,000.

Rising leverage and funding charges above 8% introduce near-term fragility because the market navigates uncharted territory, leaving the uptrend mature however weak to resets.

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