Bitcoin Pulls Back on Profit-Taking; Futures OI Near $42B
Bitcoin pulled back about 5%, trading near $118,000 as long-term holders increased profit-taking. On-chain metrics show the Spent Output Profit Ratio (SOPR) climbed above 2.5, while the Whale-to-Exchange Ratio signals growing sell pressure. However, SOPR remains below cycle-top levels around 4.0, suggesting limited distribution. In the derivatives market, Bitcoin futures open interest holds near $42 billion and funding rates stay positive, reflecting strong bullish sentiment. High leverage raises liquidation risks. Key support sits at $116,000 and $107,000, with resistance near $122,000. Traders should monitor Bitcoin’s SOPR thresholds, whale flows, open interest, and funding rates to manage risk amid potential volatility.
Neutral
The news highlights mixed signals. Short-term bearish pressure arises from profit-taking by long-term holders, indicated by rising SOPR and whale transfers to exchanges. However, SOPR remains below historical cycle peaks, and high open interest and positive funding rates reflect ongoing bullish sentiment in futures markets. Traders face potential volatility: key support levels at $116,000/$107,000 and resistance at $122,000 will influence near-term price action. Overall, the balanced on-chain and derivatives data suggest a neutral outlook as traders manage risk.