Bitcoin resistance at $120K normal due to ‘frothy’ open interest near all-time highs
2025-07-16 21:52:08
Main Idea
Bitcoin shows signs of a bearish signal due to high open interest and profit-taking, but strong dip-buying and key support levels maintain the bullish outlook.
Key Points
1. The Miners’ Position Index (MPI) surged to its highest level since November 2024, indicating increased miner selling pressure.
2. Realized profit and loss from BTC deposits to exchanges hit an all-time high of $9.29 billion, signaling aggressive profit-taking.
3. Bitcoin open interest and the Fear & Greed Index in 'Extreme Greed' territory historically precede local tops and corrections.
4. Despite panic selling of nearly 50,000 BTC at a loss, strong dip-buying of over 196,600 BTC between $116,000 and $118,000 supports the bullish trend.
5. Technical analysis suggests Bitcoin's consolidation above $112,000 after a 19% rally increases the likelihood of upward momentum resuming.
Description
Bitcoin shows its first major bearish signal in weeks, yet strong dip-buying and key support levels keep the bullish outlook intact.
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