Investor profitability and spending have increased notably but remain below prior bull market peaks, suggesting further upside potential before overextension.
Analysts identify US$120k as the next key resistance zone where sell-side pressure is expected to accelerate based on historical on-chain models.
Trump’s tariff threats create market uncertainty, but a recent court ruling declares “reciprocal tariffs” illegal, though the current administration plans to appeal.
Think Bitcoin has run out of steam after making a new all-time high (ATH) recently? It has been sideways trading for a bit now, but according to some analysts, that’s no reason for concern.
In their most recent analysis aptly titled “Heating Up”, the experts at Glassnode noted that the strength of the BTC rally continues following the ATH, which, coincidentally, was also the third “fresh ATH of this cycle”.
Therefore, they wrote that activity levels across all market sectors are up. Interactions on exchanges are up, with “around 33% of total Bitcoin on-chain volume now passing through centralized trading venues”.
The derivatives sector is also seeing a lot of action, with futures and options seeing substantial growth in open interest.
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Investor Profitability and Spending Continue to Go Up
One of the more bullish themes is that investors are more profitable and more active than they have been recently, which supports the view of a healthy, upward-trending market. Because these measures still sit below prior bull-market peaks, there may be further runway before the market reaches a level of overextension that typically precedes a major correction.
Investor profitability and spending behavior have both increased notably, and current levels remain below the extremes reached at prior bull market peaks.
The analysts have therefore identified the key level of interest:
In the event of further upside, the $120k level appears as a key zone of interest, with sell-side pressure expected to accelerate in and around this zone based on on-chain price models intersected in prior cycles.
Glassnode That does sound great for anyone who bought the dip in April, with BTC being up over 40% since. But what has kept the markets, including crypto, under its spell for the past few months is… well, tariffs, of course.
TACO’s and Court Rulings
The flip-flopping of Trump – threatening to punish even long-term US allies for what his administration frames as being “abusive” towards the US – and the effects it has had on markets has been causing headaches and headlines alike.
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Wall Street even coined a term for Trump’s tariff drama: Trump Always Chickens Out. Or in short: TACO.
And the tariff saga is now entering a new stage. The Court of International Trade has just ruled that Trump’s “reciprocal tariffs” are actually illegal, meaning they can’t be enforced any longer and might even lead to refunds.
But don’t hold your breath just yet, the administration has said it will file an appeal.
So I guess, the only thing left to say:
Story to be continued…