Bitcoin Hits $117K Ahead of Fed Decision, Sentiment Bullish

Bitcoin surged past $117,000 during early trading hours, reaching its strongest level since early August as traders positioned ahead of the Federal Reserve’s critical interest rate decision. Market expectations of monetary easing have fueled bullish sentiment across crypto markets, with futures markets fully pricing in a quarter-point cut. However, analysts warn that excessive optimism could backfire if the Federal Open Market Committee delivers unexpected news, with options traders actively hedging for potential volatility.

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Bitcoin’s Bullish Trend Hinges on Key Support Level

Bitcoin’s price trajectory remains bullish as long as it holds above the short-term holder cost basis, according to Glassnode’s latest analysis. The on-chain analytics firm highlights how this key metric has repeatedly acted as support during the current bull run, with the cryptocurrency currently trading around $116,200 and maintaining this critical psychological threshold that influences market sentiment and trading behavior.

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Bitcoin’s ‘True Top’ May Be In: 2021 Cycle Déjà Vu Warns Analyst

Bitcoin’s current market cycle is exhibiting striking parallels to the 2021 pattern, with long-term holders distributing approximately 12.4% of their supply in Q1 2025—a move that analyst Michael Nadeau suggests may have already marked the ‘true’ cycle top. This distribution pattern, reminiscent of the 13.5% sell-off before Bitcoin’s April 2021 peak, signals potential vulnerability despite recent price strength, with Glassnode data revealing underlying fragility in volumes, CVD trends, and options market behavior that could cap future rallies.

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Bitcoin Faces Selling Pressure as Long-Term Holders Dump BTC

Bitcoin is experiencing significant selling pressure from long-term holders and dormant wallets, creating market uncertainty. Despite this, U.S. spot Bitcoin ETFs are seeing substantial inflows, indicating strong institutional demand. The battle between mass selling and institutional buying is defining Bitcoin’s current market dynamics, with the cryptocurrency trading at $115,110 amid key technical resistance levels.

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Ethereum MVRV Nears 2.4 Barrier: Bullish Momentum Alert

Ethereum demonstrates strong bullish performance with a 9.06% weekly gain, briefly reaching $4,700. On-chain analysis reveals the MVRV ratio at 1.97, approaching the historically significant 2.4 bearish threshold where traders typically begin taking profits. Crypto analyst Burak Kesmeci notes that while current levels indicate substantial unrealized profits and positive momentum, crossing 2.40 could trigger significant selling pressure. The ratio’s extreme zone begins at 3.20, levels seen during previous bull market peaks in 2017 and 2021. Despite a minor 0.2% daily decline, Ethereum maintains strong weekly and monthly gains of 8.75% and 3.40% respectively, though trading volume has decreased by 14.42%, suggesting temporary cooling in market activity.

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BRC-20 Tokens Strain Bitcoin Nodes More Than Ordinal Images

BitMEX Research’s comprehensive study analyzed the impact of BRC-20 tokens and Ordinal images on Bitcoin node performance over nearly three years. While both use approximately 30GB of storage, BRC-20 tokens account for 92.5 million transactions compared to Ordinals’ 2.7 million. The key finding shows BRC-20 transactions strain nodes more significantly by expanding the UTXO set from 84 million to 169 million between 2022-2025, creating challenges especially for pruned nodes. Surprisingly, large Ordinal images stored in Taproot’s non-executed witness space actually showed potential verification speed improvements of about 11%, though researchers caution this doesn’t make them beneficial overall due to blockspace consumption concerns. The study emphasizes that internet speed and hardware variations require further testing for conclusive results.

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Bitcoin Eyes $120K as Bulls Target Weekly Close Above $114K

Bitcoin has recovered from its recent low near $107,000 and is currently testing the critical $114,000 resistance level. Analysts emphasize that a weekly close above $114,000 would establish bullish momentum and potentially push prices toward the $114,000–$120,000 range. The recent price surge was fueled by a wave of short liquidations around $115,000, which cleared overhead resistance and boosted volatility. While short-term holders are realizing losses—indicating some speculative uncertainty—institutional demand suggests the broader bullish trend remains intact. Key resistance levels to watch include $117,200, which features a CME gap and could open the path to new all-time highs if reclaimed.

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Bitcoin’s Staircase Bull Cycle: MVRV Data Signals Shift

Recent analysis indicates Bitcoin’s bull market is transitioning from parabolic surges to a more gradual ‘staircase’ pattern characterized by measured advances and corrections. The MVRV ratio’s third dip below its 365-day SMA in 2024—previously rare outside Black Swan events—suggests evolving market dynamics influenced by spot Bitcoin ETFs and institutional participation. Derivatives markets show healthier structure with futures and options absorbing selling pressure, while key resistance at $114,000 represents a crucial test for market confidence. Federal Reserve’s dovish outlook with expected rate cuts could provide catalysts for renewed momentum, potentially setting the stage for new highs by year-end if historical patterns hold.

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