Bitcoin Hits $122k After Constructive Reset, Bullish Sentiment Grows
Bitcoin is currently valued at $122,052 following a significant price increase over the past week. Analysts suggest a new accumulation phase may be underway, with bullish sentiments strong in the market.
BTC Dip To $108,600 A Constructive Reset
- Bitcoin's sharp decline to $108,600 earlier this month was seen as a constructive reset rather than a collapse.
- This reset allowed the market to flush out excess leverage and weak sellers, paving the way for fresh demand.
- The drop cleared resistance from late buyers in the $114,000–$118,000 range, facilitating potential retests of all-time highs.
- The resilience of Bitcoin’s short-term holder base is evident, with the STH cost basis around $111,600 being defended multiple times since May.
Long-Term Behavior Encourages Bullish Shift But Downside Risks Remain
- Long-term holders have reduced their selling pace, easing supply pressure and allowing new participants to accumulate.
- This shift suggests a transition from distribution to accumulation, supporting structural stability and potential bullish continuation.
- Despite this, the risk remains if heavy selling resumes, potentially destabilizing the market.
- Bitcoin's trading activity has increased by 19.28%, highlighting the momentum behind the current rally.
- With a market cap of $2.43 trillion, Bitcoin remains the largest cryptocurrency and fifth-largest asset globally.
