Bitcoin is testing the $110,000 level, a critical threshold that could define the next major phase of the market cycle. With price hovering just below all-time highs, BTC faces a decisive moment — either push into uncharted territory or risk a correction that could shake bullish momentum. The stakes are high, and traders are watching closely as volatility begins to compress before the next major move.
A breakout above $112K would mark the start of a new price discovery phase, potentially triggering an expansive rally that could lift the entire crypto market. However, failure to break higher could lead to a sweep of liquidity below, particularly as key levels like $105K remain within reach.
Despite the high-stakes setup, current market behavior shows surprising restraint. According to data from CryptoQuant, Short-Term Holders have been selling an average of around 21,000 BTC per day via centralized exchanges (CEX) over the past 24 hours, notably below historical norms. This signals a state of relative calm, where investors are not rushing to lock in profits, even as BTC trades near record levels.
Bitcoin Prepares For Price Discovery
Bitcoin is on the verge of entering price discovery, trading just below its all-time high near $112,000. After weeks of consolidation and bullish resilience, BTC is positioned for a decisive move that could either launch the asset into uncharted territory or trigger a short-term correction to clear liquidity below. This week will likely be pivotal, as compression at the top of the range often precedes expansion, and with macroeconomic and technical factors aligning, volatility may return in force.
The broader market remains on edge due to ongoing macroeconomic uncertainty. US Treasury yields continue to climb, reflecting increased systemic risks and tighter financial conditions. These rising yields have historically applied pressure to risk assets, but Bitcoin’s stability near all-time highs suggests growing investor conviction.
Top analyst Axel Adler shared insights from CryptoQuant, revealing that Short-Term Holders (STHs) have been selling an average of 21,000 BTC per day via centralized exchanges over the past 24 hours — a figure notably below historical norms. This indicates that STHs are showing restraint and are not rushing to secure profits, even as Bitcoin approaches record levels.
The next major psychological milestone is the $120,000 mark. Historically, round-number levels like this have triggered waves of profit-taking and short-term volatility. Whether Bitcoin breaks higher this week or pulls back to build more support, the path forward is likely to be explosive. If confirmed, a breakout above $112K could signal the beginning of a full-blown expansion phase not only for BTC but for the broader crypto market. Traders and investors alike are watching closely — the next move could define the remainder of 2025’s crypto cycle.
BTC Approaches Resistance With Momentum
Bitcoin is trading at $109,318 on the 3-day chart, up 3.33% as it pushes back toward the upper Bollinger Band and tests resistance near the $112,000 all-time high. The move comes after a strong bounce from the mid-band support around $103,600 — a key level that has acted as a launchpad multiple times this cycle. With BTC now sitting above all major moving averages (50 SMA at $94,748, 100 SMA at $86,238, and 200 SMA at $70,609), the structure remains firmly bullish.
The price action is tightening within the upper range of the Bollinger Bands, a classic sign that volatility is compressing before expansion. If Bitcoin can decisively break through the $112K level, the market would enter price discovery, potentially setting off an explosive phase not just for BTC but across the crypto space.
Volume has been steady but not yet euphoric, indicating that momentum is building without excessive speculation. However, traders should watch for reactions around the $109,300–$112,000 zone. A rejection here could send BTC back toward $103,600 for another test, while a breakout above the upper band could confirm trend continuation.
Featured image from Dall-E, chart from TradingView
