- Derivatives surge as Bitcoin hits $117K, signaling sustained bullish momentum
- Low exchange inflows show holder conviction, reducing near-term selling pressure
- Overbought RSI and flat MACD suggest potential slowdown or short-term correction
Bitcoin has surged to fresh highs, leaving traders to question if the momentum can last. The cryptocurrency market witnessed over $1 billion in liquidations within 24 hours. Most losses came from short positions, while longs accounted for a minor part.
Despite this, Bitcoin’s price showed resilience, rallying past $117,000 with strong market support. The sharp rise in derivatives trading and investor confidence signals that Bitcoin’s bullish trend could extend further. Still, some technical indicators point to potential volatility ahead.
Strong Derivatives Activity Fuels Optimism
The derivatives market has been a key driver of Bitcoin’s recent surge. According to Coinglass derivatives data, trading volume jumped by 64.82%, hitting $160.57 billion.
Open interest, reflecting active derivative contracts, rose by 5.57% to $83.59 billion. Notably, options markets also saw impressive growth, with volume soaring 82.07% to $10.52 billion. Open interest for options climbed 7.79%, reaching $48.21 billion.
CryptoBusy highlights that fresh capital continues to pour into Bitcoin futures. This influx suggests rising conviction among traders betting on further upside. Bitcoin’s open interest recently climbed to $38.8 billion, reflecting strong bullish positioning.
BITCOIN OPEN INTEREST IS SURGING! 🚨
— CryptoBusy (@CryptoBusy) July 10, 2025
Fresh capital is pouring into $BTC futures, signaling growing trader conviction and positioning.
If these are long-heavy positions, the price could rip higher as momentum builds. https://t.co/MkKc0rFDFB pic.twitter.com/Zp7UfHa3m5
If the majority of this capital favors long positions, momentum could accelerate. However, CryptoBusy warns that an overly long-heavy market increases the risk of sharp pullbacks through liquidations.
Supply Metrics Indicate Holder Confidence
Besides derivatives, on-chain data from CryptoQuant shows that selling pressure remains remarkably low. Exchange inflows dropped to 18,000 BTC per day, the lowest level since 2015.
Bitcoin hit an all-time high, but selling pressure is nowhere to be seen.
— CryptoQuant.com (@cryptoquant_com) July 10, 2025
Exchange inflows dropped to just 18K BTC/day, the lowest since 2015.
That’s a 78% decline from the $100K breakout in November. Holders aren’t rushing to sell. pic.twitter.com/6sU5TAg98z
Compared to the last major breakout at $100K, this marks a 78% decline in selling. Consequently, it seems that long-term holders are not eager to cash out, supporting Bitcoin’s steady climb.
From a technical perspective, the momentum remains favorable. The MACD still flashes bullish signals, although the histogram shows some flattening. This could point to a possible slowdown in the rally’s pace.
Moreover, the Relative Strength Index (RSI) sits at 73.57, reflecting overbought conditions. Historically, Bitcoin’s RSI has hovered in this range during bull runs. Still, overbought signals often precede short-term corrections or sideways movement.
