Bitcoin Rebound Breaks $120,000, ETF Inflows Strong but Caution is Needed

[Chain News] On August 19, according to data platform monitoring, the Bitcoin price rebounded to $121,000 after falling below $114,000 last week, with on-chain activity and derivation market sentiment improving. However, the decline in spot trading volume and high profit levels indicate that the market should be cautious.

In the futures market, open interest once broke through statistical extremes before deleveraging, and the funding rate shows that traders still have demand for long positions, but confidence is relatively weak. ETF inflows are strong, with weekly inflows exceeding $880 million, indicating institutional demand resilience, but the sustainability of inflows amid price volatility remains to be observed. On-chain data shows that user activity and transaction fees have slowed down, but the adjusted transfer volume has surged, indicating that capital flows may be related to market fluctuations.

The current market profit level is relatively high, with the supply profit ratio reaching 96%, but it has not reached an extremely optimistic state, and market sentiment remains cautious. Overall, the market has pulled back from its new high to around $114,000, contrasting active ETF inflows and derivation activities with weak on-chain signals. The subsequent trend may depend on whether institutional capital flow and buyer confidence can recover.