Bitcoin Targets $120,000 Price Range as Exchange Movements and Leverage Increase

Bitcoin’s on-chain activity has increased significantly while the asset hovers around $108,000, with a key focus shifting to the $120,000 price level.

Recent findings highlighted a surge in investor profitability, increased accumulation, and strong exchange flows, reflecting trends seen during previous market peaks.

After reaching a new all-time high of $111,000, Bitcoin experienced a slight retracement to $107,000, where it has found some stability.

Accumulation trends are showing a notable rise, as the Accumulation Trend Score approaches its peak of 1.0. This indicates that investors are actively increasing their positions during this price discovery phase, reminiscent of behavior at previous highs of $70,000 and $107,000 in 2024.

The profitability among investors is also rising sharply. The Relative Unrealized Profit metric has surged to levels typically seen in euphoric market conditions.

It was observed that only 16% of trading days exhibit profits at this particular level. Meanwhile, the Spent Output Profit Ratio (SOPR) suggests that the average asset transacted on-chain has achieved a gain of 16%, ranking within the top 8% historically.

Trading activity appears to be on the upswing as well, with about 33% of Bitcoin volume now transacting through centralized exchanges, an increase compared to earlier in the year.

Coins deposited into exchanges have an average profit of $9,300 against an average loss of just $780, yielding a favorable profit-to-loss ratio of 12:1, akin to findings from previous bull markets.

Leverage has been rising as well; futures open interest has jumped from $36.8 billion to $55.6 billion (a 51% increase) since April, while options open interest reached a record high of $46.2 billion, increasing by $25.8 billion.

Moreover, spot Bitcoin exchange-traded funds (ETFs) are consistently attracting over $300 million daily, adding to the buying momentum in the market.

From a technical perspective, Bitcoin trades significantly above its 111-day moving average at $91,800, the 200-day moving average at $94,300, and the short-term holder cost basis at $95,900, indicating a strong bullish trend.

On-chain pricing models suggest essential resistance levels between $120,300 and $135,700. Historically, this range accounts for only 17.5% of Bitcoin’s trading history and frequently acts as a peak during euphoric phases.

The analysis indicates that the market is gaining momentum but has not yet reached a saturation point. Should the trend continue, the next challenge may arise around the $120,000 level, if demand from investors can counterbalance the increasing profit-taking pressure.

At the time of this report, Bitcoin holds the top spot by market capitalization, priced at approximately $108,000, reflecting a decrease of 2.45% over the last 24 hours. Its market capitalization is approximately $2.13 trillion, with a trading volume of around $49.86 billion.

Concurrently, the overall cryptocurrency market is valued at about $3.38 trillion, accompanied by a 24-hour trading volume of $119.25 billion. Bitcoin’s dominance remains strong at approximately 62.95%.