Bitcoin Retreats from ATH, But Shows No Sign of Investor Exit

Following its new record high, Bitcoin price slid to $108,500. Despite the dip, traders remain highly active, and long-term holders aren’t rushing to exit.

Glassnode data shows that every BTC investor is at least at breakeven, yet the total realized profit is only about $1 billion — far less than the $2.1 billion seen in December 2024, when Bitcoin surpassed $100,000 for the first time.

Traders’ behavior tells the story:

• Fear & Greed Index: 76 (Greed), up 3 points;
• BTC dominance: 62.7%, down as Ethereum gains ground;
• Altseason Index: 27 → still Bitcoin season.

Liquidations volume is rising sharply: $544 million total, of which $402 million came from long positions. ETH traders were hit hardest — with $140 million in losses — while Bitcoin saw $130 million wiped out. It’s a trend that’s stretched beyond a week, underscoring a clear surge in interest toward Ethereum.

Bitcoin Braces for Volatility

With no clear resistance overhead, Bitcoin’s price position is growing more volatile. The uptrend remains, and funding rates are steady, while a previous daily bearish divergence seems to have faded. However, overheating indicators and the early signs of a potential weekly bearish divergence suggest caution, as upward momentum may face short-term exhaustion.

Just before the drop, crypto analyst Daan Crypto Trades highlighted a narrow consolidation zone forming near Bitcoin’s latest all-time high. He noted that a move outside that range could unleash large-scale liquidations, as liquidity had built up on both sides of the market. That scenario played out shortly after — confirming the setup — though the correction remains limited for now.

Funds Flow In, Traders Gear Up

Yesterday’s ETF flows underscored rising interest in Bitcoin among U.S. institutions. Total net inflows hit $934.8 million, with BlackRock’s IBIT dominating the field. The fund took in $877.2 million in a single day, lifting its total AUM to $71 billion. To put that in perspective — the next largest ETF, FBTC, trails far behind at $22 billion.

At the same time, open interest (OI) in Bitcoin futures continues to climb, now approaching $80 billion — a new all-time high. This trend signals increasing trader engagement and a buildup of positions, while also underscoring the market’s strong liquidity. Historically, rising prices alongside expanding open interest is considered a classic indicator of a bullish trend.

That said, high open interest isn’t just a bullish signal — it can also point to fragility. When leverage is high, even a small price shock can trigger outsized moves as positions unwind.

In this light, rising OI reflects a saturated, tightly coiled market.

Read on: How to Buy New Crypto Before Listing: A Step-by-Step Guide

Yet, the sentiment isn’t euphoric. There’s no visible FOMO. Instead, what we’re seeing is measured interest from long-term investors, while much of the market action is fueled by short-term traders hunting fast returns.