Bitcoin has surpassed its previous all-time high, reaching $118,254 and marking a notable milestone in its price trajectory. This latest milestone comes after BTC’s former high at $111,000 levels in May, representing a 10% gain over the past week and roughly 5.9% in the last 24 hours.

At the time of writing, Bitcoin is trading at approximately $117,584. The sharp price increase appears to be giving strength to activity among both miners and leveraged traders, prompting a closer examination of current market behavior.

Analysts monitoring on-chain activity have flagged a resurgence of miner activity alongside a rise in derivative positions, suggesting multiple forces may now be contributing to price movements.

As these two segments of the market engage more actively, questions are emerging around the sustainability of this rally and whether these behaviors signal confidence or caution. The current on-chain environment shows both selling pressure from miners and increased exposure from long-positioned traders.

One of CryptoQuant’s QuickTake contributors, Arab Chain, observed a marked increase in miner activity as Bitcoin crossed the $118,000 level. According to the analyst, this uptick in activity is tied to miner transfers to exchanges, marking the first such increase since May 23.

This trend suggests miners could be taking advantage of recent price gains to realize profits. As Arab Chain explained, “The continued activity of miners, coupled with Bitcoin’s price rising to new highs, clearly indicates that they are selling Bitcoin.”

Despite this renewed transfer volume, miner behavior has not yet reached the scale of over-the-counter (OTC) selling seen in previous months. Historically, large-scale selling by miners has introduced notable volatility into the market, particularly when sustained across a broader period.

The analyst also pointed out the economic leverage miners hold in decision-making, owing to their ability to manage operational costs and balance between holding and selling mined Bitcoin. Whether this increase in exchange flows will develop into heavier selling remains to be seen.

In a separate analysis, CryptoQuant contributor Enigma Trader focused on derivatives market activity, highlighting a 24% surge in open interest from approximately $33 billion on July 1 to over $41 billion by July 11.

The timing of this increase coincides with Bitcoin’s breakout above $118,000, and reflects renewed leveraged interest following a reset late last month. This level of open interest suggests that traders are positioning more aggressively, potentially anticipating continued upside.

The analyst also noted a shift in funding rates from negative to their highest positive reading in a month, around 0.012% per eight hours. Positive funding indicates that long-positioned traders are paying to maintain their positions, a sign of bullish sentiment.

However, Enigma Trader cautioned that such positioning can become precarious if momentum slows. “This setup often fuels upside continuation if spot demand backs it, but also increases the risk of a long squeeze should momentum stall,” the analyst wrote.

Featured image created with DALL-E, Chart from TradingView