Bitcoin (BTC) has entered a new phase of the bull cycle, hitting an all-time high (ATH) north of $111,000 on May 22, which was fueled by increased investor confidence, record spot BTC exchange-traded fund (ETF) inflows, and heightened derivatives activity.<\/p>\n
However, as on-chain indicators flash signs of euphoric sentiment, analysts are warning that volatility could be around the corner, especially with the $120,000 level emerging as an important psychological and technical threshold.<\/p>\n
According to the latest weekly market sweep<\/a> by crypto analytics platform Glassnode, Bitcoin\u2019s strength remains firmly intact. Metrics show rising investor profitability, soaring trade volume through centralized exchanges, and a 51% increase in futures open interest since April\u2019s local low around the $74,000 level.<\/p>\n The euphoric signals are also manifesting in tangible market activity. Glassnode reported a significant uptick in exchange interactions, with approximately 33% of all Bitcoin on-chain volume now flowing through centralized trading venues, something analysts consider to be a clear indicator of rising trading appetite.<\/p>\n Furthermore, the analytics platform noted that while BTC has broken its third ATH<\/a> this cycle, the rally remains within historical bounds. Its data paints a picture of a market heating up rapidly, with investor profitability surging high enough to push the Relative Unrealized Profit metric above its +2 standard deviation band.<\/p>\n \u201cThese environments are usually characterized by heightened volatility and tend to be brief in duration,\u201d noted analysts, highlighting that only 16% of all trading days see such extreme paper profits.<\/p>\n Their finding is similar to a May 28 report from CryptoQuant, which revealed that 99% of Bitcoin\u2019s Unspent Transaction Outputs (UTXOs) are now in profit<\/a>. This threshold marked critical market turning points in the past, often coming before either sustained rallies or sharp corrections.<\/p>\n However, the experts at CryptoQuant urged caution, pointing to unresolved macroeconomic uncertainties<\/a>, particularly around U.S. policy direction under the Trump administration, as a factor that could potentially mute full-blown risk appetite despite the extreme profitability.<\/p>\n BTC\u2019s recent price trajectory seems to be reflecting this push-and-pull dynamic. After peaking at $111,814 a week ago, the flagship cryptocurrency has experienced expected consolidation, pulling back to trade around $107,728 at the time of this writing.<\/p>\n While the price represents a modest 1.2% dip in the last 24 hours, zooming out reveals the broader momentum. Despite a 3.4% pullback over the past seven days, BTC remains up by a solid 14.1% over the last month, while its year-over-year gains stand at 56.6%.<\/p>\n All eyes are now fixed on the $120,000 threshold, which Glassnode identified as a critical inflection point at which several on-chain price models converge. Judging from the past, if BTC were to breach these levels, it could accelerate sell-side pressure as long-term holders look to pocket gains.<\/p>\n \u201cIn the event of further upside, the $120k level appears as a key zone of interest, with sell-side pressure expected to accelerate,\u201d the platform\u2019s analysts concluded.<\/p>\n The post Bitcoin Enters Euphoria Phase: On-Chain Data Signals Volatility Ahead at $120K<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) has entered a new phase of the bull cycle, hitting an all-time high (ATH) north of $111,000 on May 22, which was fueled by increased investor confidence, record spot BTC exchange-traded fund (ETF) inflows, and heightened derivatives activity. However, as on-chain indicators flash signs of euphoric sentiment, analysts are warning that volatility could […]<\/p>\n","protected":false},"author":0,"featured_media":70106,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-70105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/70105"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=70105"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/70105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/70106"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=70105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=70105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=70105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Price Action Reflects the Tension<\/h2>\n