Cryptocurrency analysis firm Glassnode reported in its new report titled “October Rally” that Bitcoin surpassed the supply zone in the $114,000-$117,000 range with strong market momentum and rose to $126,000.
The company argued that record-high ETF inflows and the accumulation trend of medium-sized investors were influential behind the rise.
According to the report, 97% of the supply is now in profit. Glassnode noted that these levels typically precede a period of consolidation, but that profit-taking is currently limited, suggesting a regular rotation in the market rather than “distribution pressure.”
The company stated that the supply cluster at $117,000 has turned into a support zone, where small and medium-sized investors continue to buy, while large investors are realizing profits.
Bitcoin's rise to a new high was fueled by weekly ETF inflows exceeding $2.2 billion and surging spot demand. This led to new records in both price and market activity, while spot trading volumes reached their highest levels of the year.
Glassnode noted that open interest and funding rates in derivatives markets have risen, particularly late-entry long positions, disrupting market balance. This, along with the recent correction, could help rebalance positions.
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In the options market, it was noted that implied volatility had risen, skew ratios had neutralized, and call‑heavy trading had intensified. The company interpreted this as an indicator of strong momentum, but cautioned that overly optimistic positioning could increase volatility in the short term.
Glassnode stated that on‑chain data shows that approximately 190,000 BTC changed hands in the $117,000–$120,000 range, and that this level could act as a re‑demand zone in case of possible pullbacks.
Glassnode stated that Bitcoin's climb to $126,000, breaking the $114,000‑$117,000 range, demonstrates the structural strength of the market, but that increasing leverage and concentrated long positions could create fragility in the short term.
*This is not investment advice.