Bitcoin continues to hit new all-time highs, and long positions are increasingly active in the futures market. This has driven funding rates sharply upward, a typical pattern seen in the second leg up following a halving event. When the market becomes overly skewed to one side, it often triggers price movements that benefit the opposing side. Although Bitcoin may see a short-term pullback, this doesn’t signal the end of the bull market. In fact, the steep rise in funding rates is more often a sign that the bull run is just getting underway.
We’re also observing profit-taking in the spot market. As mentioned in my previous analysis, long-term holders have completed a significant accumulation phase and are now beginning to distribute to new entrants. Breaking down UTXOs by holding periods, it appears that mid-term holders in the 6-18 month range are realizing gains. The average entry price for 6-12 month holders is around 57K USD, while 12-18 month holders’ average entry price is about 28K USD. These are typical cycle investors, and similar profit-taking activity has been seen in previous bull markets without marking an end to the rally.
Doubt around the bull market is now fading, and public interest is likely to increase steadily from here.
Written by Avocado_onchain
