Bitcoin : Balanced Flows and Profit-Taking Shape the Market
During the recent price surge, investors acquired over 120,000 BTC within the $112,000 to $114,000 price range. This accumulation indicates strong buying interest at these levels. Currently, Bitcoin is trading around $116,600, just above the significant resistance zone between $116,000 and $117,000.
We’re now awaiting a clear test of the current zone before a potential continuation of the uptrend. Meanwhile, long-term holders have realized $44.5 million in profits over the past 48 hours. This demonstrates that a segment of the market remains cautious in this area.
According to Glassnode data, the supply in the zone between $110,000 and $116,000 is limited. This creates a kind of vacuum zone without solid support, increasing the risk of a rapid decline if buying pressure diminishes. Maintaining levels above $116,000 in the coming trading days will therefore be crucial to consolidate the recent breakthrough.
Mixed Network Activity
Bitcoin’s on-chain activity remains volatile. The number of new addresses recently dropped to 131,000, while transaction count decreased to 219,000. This decline indicates reduced network usage, which is often associated with weakening price momentum.
However, data from CoinGlass shows a positive spot flow of $33.25 million recorded on August 7, potentially signaling renewed buyer interest. Historically, larger and more sustainable rallies are often accompanied by increased network activity and consistent capital inflows.
Although breaking through $116,000 is a positive technical signal, the market remains divided. For a convincing progression toward $120,000 and potentially new all-time highs, a combination of higher transaction volumes, steady flows, and increased network participation will be necessary. Without these factors, the risk of correction remains.
