- Bitcoin price rally driven by ETFs, institutions, and policy support.
- Derivatives market activity signals sustained trader confidence and participation.
- A technical indicator hints at possible near-term profit-taking ahead.
Bitcoin (BTC) price surged past $121,000 on Monday, nearing its all-time high of $123,000. The move followed a strong August performance, with the cryptocurrency posting gains of around 10% for the month.
The recent rally reflects a combination of bullish macro signals and increased institutional participation. Over the past three days, spot bitcoin exchange-traded funds recorded $773 million in net inflows, with BlackRock’s IBIT leading the charge. Corporate players are also expanding their holdings. Michael Saylor’s strategy is reportedly seeking to grow its $76.8 billion BTC portfolio.
Bitcoin Price Edges Closer to Record High After $122K Breakout
The breakout above $120,000 marked a key technical milestone for BTC, reinforcing a broader uptrend seen over the past month. The Bitcoin price rose 4% in the last 24 hours to trade at $122,104, aligning with a 7% weekly gain. Trading volume jumped 26.46% to $75.86 billion, reflecting renewed market activity.
Ethereum also joined the rally, climbing to $4,300, its highest level since December 2021. Institutional demand has been a major driver, with spot ether ETFs attracting $461 million in inflows last week, outpacing Bitcoin ETF investments during the same period.
The policy environment added further momentum. On Thursday, former President Donald Trump signed an executive order instructing the Labor Department to explore allowing cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans. The move is seen as a potential catalyst for mainstream adoption of digital assets in retirement portfolios.
The broader crypto market echoed Bitcoin price momentum. The total market capitalization reached $4.06 trillion, a 2.75% daily increase, while 24-hour trading volumes rose to $173.72 billion. Major altcoins, including Solana (SOL), Cardano (ADA), XRP, and Dogecoin (DOGE), also posted notable gains, signalling a broad-based rally across digital assets.
Bitcoin Derivatives Market Sees Strong Surge
Bitcoin derivatives markets recorded a sharp surge in activity, with multiple key indicators showing substantial growth. Trading volume rose by 45.67%, reaching $93.30 billion, signaling renewed investor participation. Open interest also climbed 6.80% to $84.61 billion, suggesting that traders are maintaining and increasing their positions.
Options trading saw the most dramatic change, with volume skyrocketing by 128.40% to $6.79 billion. Options open interest increased 4.04% to $52.37 billion, reflecting steady demand in the derivatives segment. These movements indicate heightened market activity and growing interest in Bitcoin’s derivatives landscape.
Bitcoin Price Breaks $122K, Eyes $125K
The Bitcoin price surged past the $122,000 mark in the 24 hours, signaling strong bullish momentum in the market. The sharp rally followed a breakout above the $120,000 resistance, supported by a surge in buying pressure.
The Relative Strength Index (RSI) now stands at 77.76, moving deep into overbought territory, which suggests potential short-term profit-taking.
The Moving Average Convergence Divergence (MACD) shows a wide bullish gap, with the MACD line at 1,217.93 above the signal line at 726.45. This reinforces the bullish sentiment, indicating strong upside momentum.
If buying pressure continues, the next major target lies near $125,000, with $128,000 as a potential extension. In case of a pullback, immediate support is expected around $120,000, followed by $118,000.
