Bitcoin extends all-time high rally, but selling activity poses pullback risk

• Bitcoin's all-time high rally was fueled by a rise in spot and futures volumes, surging 50% and 31% over the past week.
• BTC has also seen a rise in demand among accumulation addresses, which set a new high in 2025.
• Bitcoin inflows to centralized exchanges have spiked after hitting consecutive highs, signaling rising selling activity.

Bitcoin (BTC) marked a new all-time high of $123,091 on Monday following prevailing bullish sentiment in the spot and futures market. Despite the price growth, profit-taking is developing on the side as revealed by a spike in Bitcoin's exchange net inflows.

Bitcoin maintains bullish potential amid growing selling activity

Bitcoin marched to an all-time high of $123,091 in the early hours of Monday, backed by strong spot and futures activity, according to Glassnode. The top crypto, which has been establishing consecutive highs in the past week, has notched the milestone for the fifth time since July 9, 2025.

The report highlighted a rise in open interest above $87 billion, while funding payments grew nearly 2x to $2.1 million, indicating heightened confidence among long-position traders.

On the other hand, the options market saw a measured change, with open interest surging and skew turning negative, pointing to rising bullish sentiment among traders.

"The market is in a high-profit, high-conviction phase, supported by both derivatives and spot participation," Glassnode stated. Despite the bullish outlook, such an increase in leverage puts the market at risk of sharp price swings. 

Alongside changes in spot and derivatives volumes, Bitcoin demand among accumulation addresses — wallets that have never spent any BTC — hit a new record high.

These addresses have accumulated around 248,000 BTC for July — approximately $29.5 billion, well above the monthly average of 164,000 BTC, suggesting a recent surge in buying activity, according to data from CryptoQuant.

"Despite BTC continuing to break new all-time highs, some long-term players are already positioning themselves by accumulating now," CryptoQuant analyst Darkfrost wrote on Monday.

The increased demand aligns with a surge of inflows into spot Bitcoin exchange-traded funds (ETF), which recorded $2.7 billion in weekly inflows last week.

However, selling pressure is building on the side despite the strong accumulation from investors. BTC Exchange Netflows — which measures the difference between the amount of Bitcoin flowing in and out of exchanges — shows inflows into centralized exchanges have far outpaced outflows in the past four days. This comes as the supply of BTC in profits have jumped, spurring investors to book gains partially.

BTC Exchange Netflows. Source: CryptoQuant

An acceleration of this trend could force a correction in Bitcoin's price, potentially wiping off several long positions.

"We maintain our structurally bullish view on BTC, underpinned by continued institutional inflows and macro tailwinds," QCP analysts wrote in a note to investors on Monday. "However, at current levels, we prefer to be selective and are holding back from chasing the rally in favor of positioning on a pullback, should it occur."

Bitcoin is changing hands at $119,500 at the time of publication, up 0.2% on the day, according to CoinGecko data.