Bitcoin Rebounds to $121,000 Amid Thin Liquidity and Market Optimism
Market Overview
Bitcoin's price rebounded sharply this past week from below $114,000 to nearly $121,000, attributed to a shift from seller exhaustion to renewed demand. However, spot trading volumes decreased by 22% to $5.7 billion, indicating the rebound was driven more by positioning changes than strong buying conviction.
- Spot Cumulative Volume Delta showed a 94% increase in buy pressure, replacing aggressive selling.
- Derivatives market saw leveraged traders re-engaging, with Perpetual Cumulative Volume Delta rising by 88% and options open interest increasing by 6.7% to $42.4 billion.
- ETF outflows halved to $311 million, while overall ETF trade volume dropped 27.7% to $13.7 billion.
- Active Bitcoin addresses rose 8.4% to 793,000, with fee volume climbing 10%.
- High profitability levels (94.1% of supply in profit) may lead to increased selling pressure if sentiment shifts.
Market conditions suggest volatility as Bitcoin approaches all-time highs, with key focus on Tuesday’s U.S. CPI report that could impact momentum.
Current Prices
- BTC: Trading at $118,000 as traders prepare for potential impacts from the CPI report.
- ETH: Priced at $4,200, benefiting from increased on-chain capacity and lower DeFi costs.
- Gold: Dropped to $3,355.13 amid improved risk sentiment and policy expectations.
- Nikkei 225: Reached record highs following the extension of a U.S.-China trade truce.
- S&P 500: Down 0.2%, just under its record high as investors await inflation data.