Recent Bitcoin price action has formed a bearish engulfing candle, signaling potential short-term exhaustion following a 19% rally over three weeks. This technical pattern suggests a pullback is possible, though market analysts emphasize the broader context points to caution rather than an imminent collapse.
Supporting the indication of near-term pressure, the Miners’ Position Index (MPI) surged to 2.78, its highest level since November 2024. This spike typically signifies increased selling pressure from miners seeking to realize profits.
Aggressive profit-taking is further evidenced by Realized Profit and Loss (P&L) metrics reaching an all-time high of $9.29 billion. This record places Bitcoin in a high-risk zone for short-term volatility.
Despite these near-term headwinds, significant underlying bullish conviction persists. Substantial buying occurred at lower levels, with over 196,600 BTC (valued at approximately $23 billion) acquired within the $116,000–$118,000 price zone. This accumulation reinforces long-term positive sentiment.
Maintaining the $112,000 support level is considered critical for market resilience. Current evidence of persistent dip-buying and miner behaviour, despite elevated selling in the very short term, points towards a fundamentally sound market structure overall amidst anticipated volatility.