Bitcoin's new all-time high has traders asking: Is BTC price overheating at $111K?
Bitcoin (BTC) reached a new all-time high of $111,970 on May 22, then retraced to $110,700. Analysts indicate that Bitcoin is not overheated, with low funding rates and limited profit-taking by short-term investors. The funding rate shows an increase in long bets, but these are smaller compared to previous peaks, suggesting negligible overheating in the futures market. The short-term holder Spent Output Profit Ratio (SOPR) is at 1.02%, indicating minimal profit-taking despite high prices. The MVRV Z-score is at 2.8, below the red zone, suggesting the market top is not yet reached. Bitcoin's relative strength index (RSI) shows overbought conditions in some timeframes, with a Crypto Fear & Greed Index of 78 indicating extreme greed. While caution is advised due to potential corrections, BTC may continue to rise due to increasing spot ETF demand and easing trade tensions.
