Bitcoin Shows Early Bearish Signals Amid Strong Dip-Buying and Key Support Levels

Key Points

1. Bitcoin's bearish engulfing candle indicates short-term exhaustion following a 19% rally over three weeks, but broader market context suggests caution rather than a collapse.

2. Miners’ Position Index (MPI) surged to 2.78, the highest since November 2024, signaling increased short-term selling but not an imminent market downturn.

3. Realized profit and loss (P&L) metrics hit an all-time high of $9.29 billion, indicating aggressive profit-taking and placing Bitcoin in a high-risk zone for short-term volatility.

4. Over 196,600 BTC (valued at $23 billion) was purchased in the $116,000–$118,000 range, reinforcing long-term bullish sentiment and accumulation during the pullback.

5. Bitcoin's ability to hold above the $112,000 support level is critical for market resilience, with dip-buying and miner behavior pointing to a fundamentally sound market despite short-term volatility.