Important takeouts:
Bitcoin forms a bearish wrapping candle, indicating potential short-term fatigue.
The Minors Position Index has surged to its highest level since November 2024, reaching a record high that earned profits.
Despite panic sales, over 196,600 BTC has accumulated in the $116,000-118,000 range, reinforcing traders’ bullish long-term sentiment.
Bitcoin (BTC) has printed its first notable bear signal on its daily charts since early May, forming a bearish surround candle confirmed by the shooting star pattern. This has occurred after 19% of meetings in the last 21 days, and probably signal fatigue.
Data from Cryptoquant highlighted that Miners’ Position Index (MPI) has surged beyond 2.78, the highest level since November 2024. MPI measures how much Bitcoin miners send in exchanges compared to their yearly average. Higher measurements suggest an increased likelihood of sales. This could put short-term pressure on the body, but the spikes are well below the levels that are usually seen near the top of the Bull Market.
In addition to this attentional outlook, profits and losses (P&L) from BTC deposits to centralized exchanges reached an all-time high of $92.9 billion, resulting in aggressive profits. Crypto analyst CrazzyBlockk explained that these metrics refer to high-risk zones where short-term volatility could be enhanced, even if the broader bullish trend remains intact.
Meanwhile, trading platform High Block Capital noted that Bitcoin’s open interest is “closing a bubbly level.”
“Historically, when this happens (and) the terrifying and greedy indicators are in the territory of “extreme greed” -> local top and get corrections. These bright red highlights are when both conditions occur.
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Is it when the Bitcoin holder is in panic or has patience?
Bitcoin’s latest dips have caused a wave of panic sales, losing nearly 50,000 BTC within 24 hours, according to Bitcoin researcher Axel Adler Jr.
However, the data suggests that the pullback was filled with stronger purchase interest. Bitcoin’s cost-based delivery heatmap shows investors have accumulated between $116,000 and $118,000, over $23 billion, over $23 billion. Therefore, despite the signs of fear-based sales, the substantial decline highlights the continued market confidence and belief in Bitcoin’s long-term trajectory.
From a technical standpoint, Bitcoin remains firmly within a bullish long-term structure as long as it integrates beyond the $112,000 level. Following a 19% rally, a period of sideways or minor pullbacks is a healthy reset, allowing the market to cool down, flush out excess leverage and shake off weaker hands.
Recent bearth encirclement patterns may indicate short-term fatigue or potential reversal, but have yet to negate wider ascent paths. As long as the main support level holds around $112,000, the chances of resuming BTC’s upward momentum remain high.
Related: Bitcoin “Not at the peak yet”: See these BTC price levels next
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
