Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the hreflang-tags-pro domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/wp-includes/functions.php on line 6121
[www-stage.newsbtc.com/bitcoin-news/bitcoin-smashes-past-111k-but-are-traders-about-to-dump/amp/]
[wp-includes/functions.php:6121 trigger_error(), wp-includes/functions.php:6061 wp_trigger_error(), wp-includes/l10n.php:1371 _doing_it_wrong(), wp-includes/l10n.php:1409 _load_textdomain_just_in_time(), wp-includes/l10n.php:195 get_translations_for_domain(), wp-includes/l10n.php:307 translate(), wp-content/plugins/hreflang-tags-for-wordpress/includes/variables.php:24 __(), wp-content/plugins/hreflang-tags-for-wordpress/hreflang-tags-pro-main.php:45 include_once('wp-content/plugins/hreflang-tags-for-wordpress/includes/variables.php'), wp-content/plugins/hreflang-tags-for-wordpress/hreflang-tags-pro.php:40 require_once('wp-content/plugins/hreflang-tags-for-wordpress/hreflang-tags-pro-main.php'), wp-settings.php:545 include_once('wp-content/plugins/hreflang-tags-for-wordpress/hreflang-tags-pro.php'), wp-config.php:53 require_once('wp-settings.php'), wp-load.php:50 require_once('wp-config.php'), wp-blog-header.php:13 require_once('wp-load.php'), index.php:17 require('wp-blog-header.php')]

Bitcoin Smashes Past $111K, But Are Traders About to Dump?

Bitcoin Smashes Past $111K, But Are Traders About to Dump?

Bitcoin Smashes Past $111K—But Are Traders About to Dump?

Bitcoin Smashes Past $111K—But Are Traders About to Dump?

Bitcoin has surpassed its previous all-time high again, registering a new peak above $111,000 amid continued bullish momentum across the crypto market. As of the time of writing, Bitcoin is trading at $111,226, reflecting a 2.2% increase in the past 24 hours.

This upward movement has pushed the asset beyond the psychological threshold of $110,000, reinforcing optimism in its medium-term trajectory. However, analysts are monitoring underlying market data that may signal emerging risks beneath the surface of the rally.

Bitcoin Exchange Inflows and Leverage Ratios Reflect Growing Caution

CryptoQuant contributor Amr Taha recently published a detailed analysis highlighting key metrics from Binance, including net flows, open interest, and leverage levels. These metrics, when taken together, reveal a familiar setup reminiscent of December 2024, a period that preceded short-term corrections.

While Bitcoin’s price action has remained positive, the presence of high exchange inflows and speculative positioning could indicate that some investors are preparing for profit-taking. According to Taha, Binance has observed a notable increase in inflows, with approximately 3,000 BTC and 60,000 ETH entering the exchange as Bitcoin broke its all-time high.

Bitcoin exchange netflow. | Source: CryptoQuant

This shift from net outflows to inflows suggests that investors may be transferring assets to trading platforms with the intent to sell or adjust their positions. Historically, large net inflows during price peaks have been linked to increased selling activity, particularly when market participants aim to secure gains after extended uptrends.

Taha also noted that open interest (OI) on Binance has climbed back above $12 billion levels last seen in December 2024. Open interest refers to the total value of outstanding futures contracts and is often viewed as an indicator of speculative engagement in the market.

Bitcoin open interest. | Source: CryptoQuant

While rising OI can support upward continuation during bullish phases, it may also increase the risk of volatility if not supported by fresh spot market demand. Compounding this, Binance’s estimated leverage ratio has returned to 0.20, mirroring previous highs and suggesting that many traders are utilizing significant leverage. Elevated leverage levels tend to heighten sensitivity to price fluctuations and can amplify liquidations during abrupt corrections.

Are Market Conditions Echoing December’s Setup?

Taha concluded his analysis, revealing that while none of these indicators are inherently bearish on their own, their simultaneous occurrence around a new all-time high could point toward short-term instability. In previous cycles, such combinations of high leverage, rising OI, and exchange inflows have been associated with increased profit-taking and localized pullbacks.

Taha wrote:

These are not inherently bearish signals in isolation. However, when combined, they historically correlate with profit-taking behavior and often precede volatility spikes or corrections. Traders and investors should remain alert: these same conditions marked the beginning of localized tops in late 2024, especially after periods of aggressive upside.

BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Exit mobile version