Bitcoin Price Above $120,000: Balancing Aggressive Buying with Risk

Bitcoin prices stabilized near $120,000 after a sharp rise from $109,000, driven by aggressive buying and liquidation of short positions on Binance. From September 25 to October 2, open interest (OI) saw a sharp reversal: a 13.5% decline was followed by an 11% rise, reflecting a shift in sentiment from capitulation to optimism.

Analysts noted that the key factor was the Net Taker Volume dynamics on Binance. On October 2, the figure reached $1.62 billion, the highest level since September , indicating the dominance of market buying. This surge was accompanied by massive short liquidations upon breaking through $119,000. Sellers' stop orders were automatically executed, intensifying the upward movement.

Experts reported that the risk-reward data points to caution. The Sharpe-like ratio calculated by Binance is at 0.18, close to the neutral zone. This means that the return only slightly exceeds the risk, and the market has not yet shown extreme swings in either direction .

Historically , the coefficient was negative in 2024 , when the market was under pressure, and exceeded 0.5 in early 2025 , signaling a strong bullish trend. Current values indicate a phase of equilibrium and accumulation.

The average 30- day return is currently just 0.26%, with volatility hovering around 1.37%. This suggests a stable, but not overly dynamic, picture. Market participants entering now are unlikely to expect high short-term returns.

Experts note that the future direction will depend on new triggers. A decline in the coefficient below 0 could trigger a correction, while a rise above 0.3–0.5, combined with a breakout of the $120,000–$122,000 range on high volume, would confirm new bullish momentum.

Source: cryptonews.net