Bitcoin has experienced significant growth, fueled by an increase in ETF inflows, indicating strong demand. However, analysts highlight that the rise in leverage may lead to short-term vulnerabilities.

Recently, it was reported that approximately 97% of Bitcoin’s supply is currently profitable. According to blockchain analytics firm Glassnode,

“Building on the accumulation trend, Bitcoin’s rally to a new all-time high has lifted nearly all circulating supply back into profit.”

High profit levels often foreshadow consolidation, suggesting that current profits are being carefully managed rather than leading to widespread selling.

Anticipated Pullback to $117,000

Glassnode’s analysis shows vital structural support situated between $121,000 and $120,000, with heightened support nearer to $117,000 where around 190,000 BTC were previously purchased.

“While price discovery phases inherently carry the risk of exhaustion, a potential pullback into this region could invite renewed demand as recent buyers defend profitable entry zones.”

This $117,000 zone is crucial for potential stabilization and momentum resurgence.

Escalating ETF and Futures Activity

Glassnode also noted a surge in Bitcoin futures volumes, indicating robust institutional interest. In the U.S., spot Bitcoin ETFs attracted over $2.5 billion in inflows recently, marking one of the highest inflow days recorded within the first week.

This week’s data indicates a strong but maturing upward trend in Bitcoin prices, becoming increasingly susceptible to profit-taking and leveraging refinements as the cryptocurrency undergoes price discovery.

Bitcoin prices have dropped from a high of $124,000 to just under $122,000 as of this writing.