Bitcoin Smashes $107K Barrier – Is This Rally Built to Last?

BTC’s latest bull run leaves traditional assets in the dust as it punches through another psychological barrier. But Wall Street skeptics are already sharpening their ’tulip mania’ comparisons.

The real test? Whether institutional money stays for the main course—or just takes profits and runs back to their 2% Treasury bonds.

Bitcoin hit record liquidation

Bitcoin on Binance recorded its largest short liquidation yet over the past 24 hours, as sentiment quickly shifted.

Short liquidation is an event that forcefully closes the positions of traders betting on a price decline, triggering their stop loss as the price trades higher.

In this case, it followed Bitcoin’s sharp MOVE from a low of $103,195 to $105,535, a 3.48% jump. In total, these short traders lost $66.3 million within this period.

Short liquidation tends to open the door for further market rallies, as it indicates likely new capital inflow into the market, fueling momentum.

Source: CryptoQuant

AMBCrypto’s analysis found that the liquidity inflow into the market has likely come from traditional institutions investing in Bitcoin.

Per the latest report, 10 bitcoin spot exchange-traded funds (ETFs) saw a combined net inflow of 2,103 Bitcoins, worth $210.67 million.

BlackRock’s iShares contributed 1,250 Bitcoins to the total inflow, bringing its total Bitcoin holdings to 633,212, worth $66.28 billion.

A trend like this—particularly at the start of the week—is a healthy sign that traditional investors are rotating capital back into Bitcoin as they regain confidence.

The continuation of this trend could broaden market infrastructure, with traditional institutions investing in crypto and retail and whale investors shifting as well.

Is a major roadblock ahead

While Bitcoin is making moves to the upside, market analysis shows that not all sentiment aligns with that path.

The Binary Coin Days Destroyed (CDD)—which tracks when investors last moved their Bitcoin to determine whether they’re selling or buying—shows the former is the case.

Source: Cryptoquant

This is confirmed as the CDD currently has a reading of 1, implying that investors may be moving their tokens to sell.

AMBCrypto’s further analysis revealed that investors are likely moving their Bitcoin because new market data suggests it is overbought.

An asset becomes overbought when it crosses the 70-line mark (colored red) on the chart, meaning its current market price is far higher than its intrinsic value.

Source: Glassnode

What typically follows after a period at this level is the asset trending lower.

With this insight, investors are likely realizing profits to avoid future losses, giving them a chance to re-enter at a more favorable level ahead of another rally.