Bitcoin Hits $118K; On-Chain, MVRV Metrics Signal Move Toward $131K
Bitcoin surged past its previous all-time high of $112,000 to $118,000, supported by strong on-chain analysis and derivatives data. Declining exchange reserves, a depressed SOPR, and $1.14 billion in BTC short liquidations underlined market strength. OKX’s USDT Simple Earn rate spiked to 53%, echoing past yield surges ahead of major rallies. Derivatives open interest rose 5.7% to $41.2 billion, while Glassnode recorded a $4.4 billion increase in realized cap above $113,000, confirming fresh capital inflows. The MVRV oscillator stands at 2.25—below the 3.0 overbought threshold—and signals the first significant profit-taking around $130,900. Technical charts show a breakout over $103,600 and $109,300 with rising volume and bullish moving averages. With Bitcoin in price discovery, traders eye $120,000 psychological support and $131,000 resistance, though higher US Treasury yields and macro risks warrant caution.
Bullish
Rising on-chain and derivatives metrics reflect strong buying pressure and fresh capital inflows, while technical breakouts above key resistances confirm bullish momentum. The MVRV oscillator below overbought levels suggests room for further upside toward $131,000. Short-term sentiment is optimistic as traders target $120,000 and beyond, while long-term holders continue accumulation. However, rising US Treasury yields and macroeconomic uncertainties may inject volatility, warranting cautious position sizing.