Bitcoin short-term holders stay calm as they climb to $120K: Sales pressure drops
Bitcoin is testing the $110,000 level, a key threshold that defines the next major stage of the market cycle. As prices hover below all-time highs, BTC faces a decisive momentum, either entering unknown territory or risking the possibility of shocking the bullish momentum correction. The bet is high, and traders are paying close attention as volatility begins to compress before the next big move.
A breakthrough above $112K will mark the beginning of a new price discovery phase, which could trigger a massive rally that could boost the entire cryptocurrency market. However, not breaking higher could lead to liquidity below below, especially since key levels such as $105k are still reachable.
Despite the high risk setting, current market behavior shows surprising restraint. According to CryptoQuant, short-term holders sold an average of about 21,000 BTC per day through centralized exchanges (CEXs) over the past 24 hours, especially below historical norms. This marks a relatively calm state where investors are not in a hurry to lock in profits even as BTC trading is close to record levels.
Bitcoin Preparation Price Discovery
Bitcoin is on the verge of entering price discovery, trading at less than $112,000 from its all-time high. After weeks of consolidation and bullish resilience, BTC’s positioning is the decisive move to push assets into unknown areas or trigger short-term corrections to clear liquidity below. This week may be critical, as the compression at the top of the range is usually before expansion, and with macroeconomic and technical factors aligned, volatility may be effective.
The broader market remains marginal due to macroeconomic uncertainty. U.S. fiscal yields continue to rise, reflecting increased systemic risks and stricter financial situation. These rising yields have historically put pressure on risky assets, but Bitcoin’s stability near historical climaxes suggests growing investor beliefs.
Top analyst Axel Adler shared insights from crypto affluent, showing that Short-term Holders (STHS) sold an average of 21,000 BTC per day through centralized communications over the past 24 hours, a figure that is particularly below historical norms. This shows that STH is showing constraints and is not in a hurry to make a profit, even if Bitcoin is close to record levels.
The next major psychological milestone is $120,000. Historically, circular quantities like this have triggered waves of profits and short-term volatility. Whether Bitcoin breaks higher or retreats to build more support this week, the path forward could explode. If confirmed, a breakthrough above $112K could mark the beginning of a full expansion phase of BTC, for the broader crypto market. Businessmen and investors are watching closely – the next step can define the rest of the 2025 cryptocurrency cycle.
BTC approaches resistance with momentum
Bitcoin traded at $109,318 on the 3-day chart, pushing it up to the Bollinger Band and testing resistance at nearly $112,000 all-time high, up 3.33%. The move comes after a strong rebound of about $103,600 in the medium-sized support, a key level that acts as a launch pad multiple times this cycle. Now, BTC is now first of all major moving averages (50 SMA, $94,748, 100 SMA, $86,238, 200 ($70,609), and the structure remains firmly bullish.
The price action tightens in the upper range of the Bollinger band, a classic sign that volatility is compressing before it expands. If Bitcoin can decisively break through the $112,000 level, the market will enter a price discovery that will trigger an explosive phase not only for BTC but also in the cryptocurrency space.
The volume has been stable, but not yet rejoiced, indicating that momentum is building and there is no excessive speculation. However, traders should be aware of the $112,000 reaction for $109,300-112,000. The rejection here could send BTC back $103,600 for another test, while a breakthrough above the upper band can confirm the trend’s continuation.
Featured images from DALL-E, charts from TradingView
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