- Bitcoin retests the $112,000$115,000 zone, viewed by traders as a critical reload area before a potential move toward $130K.
- 96% of the BTC supply is currently in profit, highlighting strong market sentiment but raising caution over possible profit-taking.
- Technical consolidation at $114K is considered healthy by analysts, potentially setting the stage for a breakout.
Bitcoin is in an important retest phase after a clear breakout above the $112,000 barrier. At the time of writing, BTC is trading at $114,069. The BTC price has decreased by 3.14% in the last 24 hours, with the area already emerging as a significant launchpad for the journey toward the highly anticipated $130K barrier.
Source: CoinMarketCap According to popular crypto trader Merlijn, a chart he shared on August 1 indicated the $112,500 level as a reload zone for bulls, a structurally significant area of support that could serve as the foundation for the next major leg higher.
Source: X Its not hype, its formation, noted Merlijn, pointing out the technical significance of the current range. The crowd usually gets in at resistance, not before, he added, pointing out that the current zone of resistance is normally favored by knowledgeable investors.
According to him, it is where legends accumulate, the ideal time for forward-thinking players in the markets to be prepared for a larger breakout.
Sentiment is strongly bullish, with technical indicators and price structure pointing toward continued upward movement. Analysts note the current consolidation at the $114K area is healthy and would facilitate a more long-term breakout once the market can absorb current prices.
Fueling the bullish narrative, on-chain data published by analytics firm Glassnode indicates that an eye-popping 96% of all of the circulating supply of Bitcoin is profitable currently. With their highly followed Percent Supply in Profit oscillator, it has remained above the 90% threshold for over four weeks, a pattern that occurred at euphoric moments of prior bull markets.
Source: X However, Glassnode issued a note of caution. High profitability across the board can eventually create pressure to realize gains. When nearly all holders sit on gains, pressure to realize profits builds, the company elucidated, using the 91% threshold as statistically significant. A sustained decline below that threshold could signal some general reset or correction in the market.
Regardless of the potential for selling pressure, Bitcoins action currently appears rock solid. With the fact that once more, were not seeing large-scale sell-offs, even though nearly all the supply is in profit, long-term holders may be patient with eyes on higher targets.
Bitcoins on-chain fundamentals and technical structure are at a pivotal juncture. With bulls defending the $112K$115K zone and long-term capital showing conviction, momentum might be gaining for the next explosive move. If the markets keep going on this consolidation without substantial profit-taking, the move towards $130K might be closer than most think.
Since technical and on-chain metrics are being closely monitored by analysts simultaneously, this retest phase can be the beginning of Bitcoins next rally, driven not by hype but by strengthening market infrastructure.
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