- Bitcoin shows short-term bearish signals after a strong rally.
- The Miners’ Position Index has reached its highest point since November 2024, suggesting increased potential for miner selling.
- Profit-taking activities set records, with realized profit and loss hitting $9.29 billion.
- Despite recent panic selling, over 196,600 BTC, worth more than $23 billion, was accumulated between $116,000 and $118,000.
- The broader long-term bullish sentiment remains as long as Bitcoin stays above the $112,000 support level.
Bitcoin signaled possible short-term weakness after a strong rally, as the cryptocurrency formed a bearish engulfing candle on its daily chart this week. This pattern appeared after Bitcoin rose 19% in the past 21 days and marked its first significant bearish signal since early May.
Crypto data firm CryptoQuant reported that the Miners’ Position Index (MPI) rose above 2.78, the highest since November 2024. The MPI compares how much Bitcoin miners send to exchanges relative to a one-year average. A high MPI typically signals increased miner selling, which can pressure prices, although the current level remains below previous bull market peaks.
Centralized exchanges also saw realized profit and loss (P&L) reach a record $9.29 billion as traders rushed to take profits, according to an analysis cited by Crazzyblockk from CryptoQuant. “These metrics point to a high-risk zone where short-term volatility may intensify, even as the broader bullish trend remains intact,” the analyst noted. Meanwhile, Hyblock Capital stated that Bitcoin open interest is nearing potentially overheated levels, which often lead to local price corrections when paired with high readings in the Fear & Greed Index.
A recent pullback caused by Bitcoin’s dip led to the sale of nearly 50,000 BTC at a loss in just 24 hours, reported researcher Axel Adler Jr. However, data shared by Glassnode indicated that investors bought over 196,600 BTC—worth more than $23 billion—within the $116,000 to $118,000 price range, suggesting strong buying interest even during market stress. The Bitcoin cost basis distribution heatmap highlighted these accumulation levels.
Technical charts show that Bitcoin maintains a bullish outlook as long as prices stay above the $112,000 support. Recent volatility is seen as a healthy market reset, allowing excess leverage to clear and providing time for a more stable base.
For now, while bearish short-term patterns have appeared, the broader positive trend for Bitcoin remains if support levels hold. For additional context, readers can reference Binance-Activity-Signals”>analysis from CryptoQuant, Axel Adler Jr’s post, and Glassnode’s data.
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