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Bitcoin has surpassed its previous all-time high again, registering a new peak above $111,000 amid continued bullish momentum across the crypto market. As of the time of writing, Bitcoin is trading at $111,226, reflecting a 2.2% increase in the past 24 hours.
This upward movement has pushed the asset beyond the psychological threshold of $110,000, reinforcing optimism in its medium-term trajectory. However, analysts are monitoring underlying market data that may signal emerging risks beneath the surface of the rally.
Bitcoin Exchange Inflows and Leverage Ratios Reflect Growing Caution
CryptoQuant contributor Amr Taha recently published a detailed analysis highlighting key metrics from Binance, including net flows, open interest, and leverage levels. These metrics, when taken together, reveal a familiar setup reminiscent of December 2024, a period that preceded short-term corrections.
While Bitcoin’s price action has remained positive, the presence of high exchange inflows and speculative positioning could indicate that some investors are preparing for profit-taking. According to Taha, Binance has observed a notable increase in inflows, with approximately 3,000 BTC and 60,000 ETH entering the exchange as Bitcoin broke its all-time high.
This shift from net outflows to inflows suggests that investors may be transferring assets to trading platforms with the intent to sell or adjust their positions. Historically, large net inflows during price peaks have been linked to increased selling activity, particularly when market participants aim to secure gains after extended uptrends.
Taha also noted that open interest (OI) on Binance has climbed back above $12 billion levels last seen in December 2024. Open interest refers to the total value of outstanding futures contracts and is often viewed as an indicator of speculative engagement in the market.
While rising OI can support upward continuation during bullish phases, it may also increase the risk of volatility if not supported by fresh spot market demand. Compounding this, Binance’s estimated leverage ratio has returned to 0.20, mirroring previous highs and suggesting that many traders are utilizing significant leverage. Elevated leverage levels tend to heighten sensitivity to price fluctuations and can amplify liquidations during abrupt corrections.
Are Market Conditions Echoing December’s Setup?
Taha concluded his analysis, revealing that while none of these indicators are inherently bearish on their own, their simultaneous occurrence around a new all-time high could point toward short-term instability. In previous cycles, such combinations of high leverage, rising OI, and exchange inflows have been associated with increased profit-taking and localized pullbacks.
Taha wrote:
These are not inherently bearish signals in isolation. However, when combined, they historically correlate with profit-taking behavior and often precede volatility spikes or corrections. Traders and investors should remain alert: these same conditions marked the beginning of localized tops in late 2024, especially after periods of aggressive upside.
Featured image created with DALL-E, Chart from TradingView
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
