Bitcoin (BTC) status is facing challenges from profit taking and increased leverage after hitting a new all-time high of $126,000.
As reported by Glassnode On October 8th, medium holders who accumulated between 10 and 1,000 BTC Whale distribution has been driving demand in recent weeks, but has since eased. earlier this year.
The trend cumulative score shows that this collaboration between smaller entities adds structural depth to progress. Although limited support exists between $120,000 and $121,000, nearly all of the circulating supply is currently profitable.
A stronger cluster near $117,000 holds approximately 190,000 BTC and represents a zone where buyers may defend their positions if the price pulls back.
The sell-side risk ratio rebounded from the lower bound, confirming investor lock-in profits as Bitcoin entered the price discovery period.
This indicator remains well below the historical cycle peak, indicating a controlled selloff consistent with a healthy bullish phase rather than depletion.
Demand remains strong
U.S. spot ETF inflows have topped $4.8 billion so far in October, matching the largest buying by institutional investors since April, according to data from Pharcyde Investors.
Daily spot volume rose to levels not seen since spring, confirming new participation and deeper liquidity behind the breakout.
Futures open interest reached new highs as Bitcoin soared above $120,000 and annualized funding rates exceeded 8%.
This rapid expansion of leveraged long positions creates a setup that historically resolves through liquidation or a brief cooling phase.
Increasing leverage at this pace often causes short-term volatility to spike, potentially causing over-positioning to reset before a sustained trend resumes.
options indicate volatility
The options market shows that implied volatility has increased across all maturities, with at-the-money volatility increasing by about 1 percentage point, while one-week rates have jumped from 31.75% to 36.01%.
The 25-delta skew has narrowed by 21 points in less than a week, moving from a deep bear market to a near-neutral level as traders shift from defensive hedging to opportunistic call buying.
Dealers maintain long gamma positions around the current strike price until expiration at the end of the month, a structure that amplifies price pressure in both directions.
Although recent flows have been dominated by call activity, both buyers and sellers are heavily involved through spread and covered strategies.
With skew currently neutral and implied volatility rising, bullish positioning is now more expensive than a week ago, suggesting crowded sentiment that could cause sharp moves.
Bitcoin’s structure remains constructive with mid-tier accumulation, strong ETF demand, and significant support near $117,000.
Increasing leverage and funding rates above 8% creates short-term vulnerability as the market navigates uncharted territory, leaving the uptrend mature but susceptible to reset.
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(Tag translation) Bitcoin
