Bitcoin's (CRYPTO: BTC) steady rally to a new all-time high of $111,000 may soon face significant headwinds, according to new on-chain data from Glassnode.

What Happened: The analytics firm highlights $120,000 as a critical price level where historical trends suggest a sharp increase in sell-side pressure is likely to emerge.

The report finds that investor profitability has risen sharply since the recent breakout, with on-chain models showing parallels to previous market tops.

Key indicators such as unrealized profits, spending behavior and exchange inflows all suggest a growing willingness among investors to lock in gains, particularly as prices approach the upper bounds of historically overheated ranges.

Glassnode’s use of the MVRV Ratio and short-term holder cost-basis analysis reveals that the $119,000–$120,000 range is now closely aligned with thresholds that marked local tops in previous cycles.

These bands have only been surpassed during 17.5% of Bitcoin's trading history, reinforcing the rarity and risk of the current pricing environment.

Also Read: Want To Earn Yield On Your Bitcoin? Here’s How

Why It Matters: Despite strong ETF inflows and rising open interest in derivatives markets, the report underscores caution.

While bullish momentum remains intact, the market is entering territory where profit-taking could accelerate and test the resilience of support levels.

Net realized profit/loss metrics further confirm that profit margins on coins being sold are unusually high, with the average realized profit around $9,300 per coin.

Simultaneously, centralized exchange activity has spiked, with about 33% of all on-chain volume now routed through trading platforms, marking a clear uptick in speculation and distribution.

Glassnode warns that while current activity reflects a healthy bull market phase, the clustering of technical and on-chain resistance levels near $120,000 increases the likelihood of a local price correction.

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