Bitcoin Bounces Back Above $100K – Is the Bull Run Resuming or a Correction Ahead?
After spending several weeks below the $100,000 mark, Bitcoin is kicking off 2025 with renewed bullish momentum. The cryptocurrency, which has been struggling since last month, has shown signs of recovery, returning to $100,000 psychological threshold Earlier today, for the first time in recent weeks.
Bitcoin has traded between $93,000 and $95,000 this year, but has now regained momentum and is currently trading at $102,368. Bitcoin has surged 4.5% in the past 24 hours, approaching its all-time high of $108,000 set in late 2024.
This upward movement has Rekindle Optimism Among retail and institutional investors, many are keeping a close eye on key market indicators to understand whether Bitcoin can sustain this momentum or if another correction may be on the horizon.
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Short-term Bitcoin holders realize what the price is indicating
CryptoQuant analyst Yonsei Dent recently shared analyze Bitcoin’s price dynamics highlight the role of realized price (STH) for short-term holders as a key break-even point.
The realized price represents the average price at which short-term holders purchase Bitcoin and is divided into two key intervals: 1 week to 1 month (1W-1M) and 1 month to 3 months (1M-3M).
Historically, the 1M-3M range has served as an area of mid-term support, while the 1W-1M range reflects short-term market sentiment. When the gap between these two ranges widens, Bitcoin typically goes through a consolidation or correction phase until they converge again.
Currently, Bitcoin is encountering resistance in the 1W-1M range. However, the 1M-3M bands continue to provide strong support, indicating potential accumulation Opportunities for mid-term investors.
Yonsei Dent emphasizes that monitoring the interaction between these two bands is critical to identifying market trends. As they get closer, Bitcoin may experience a period of relative stability before settling on its next significant price direction.
Anticipating further upward momentum?
Another CryptoQuant analyst Joohyun Ryu said opinion into Bitcoin’s recent correction, noting that while the market is showing signs of cooling, key indicators point to a potential rebound.
Metrics such as Market Value to Realized Value (MVRV), Adjusted Spending Output Profit Margin (aSOPR) and Net Unrealized Gains and Loss (NUPL) provide valuable context for assessing market sentiment.
The MVRV ratio currently stands at 2.358, indicating that Bitcoin is trading at Premiums are moderate Relative to its realized value. Likewise, the aSOPR indicator currently stands at 1.02, indicating that Bitcoin trades are still generating profits on average.
Meanwhile, the NUPL value 0.58 reflects market sentiment Despite recent price volatility, optimism remains. Ryu also highlighted continued activity from short-term holders, noting that they continue to participate in the market despite recent volatility.
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The steady influx of new investors signals growing confidence in Bitcoin’s long-term value proposition. Historically, this behavior precedes significant price increases, reinforcing the idea that a recent cooling phase in the market could set the stage for a potential breakout.
Featured image created using DALL-E, chart from TradingView
