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Bitcoin is showing signs of stability again, even after a brief dip in price from its recent all-time high. According to a report by on-chain analytics firm Glassnode, short-term holders (STHs) of Bitcoin — those who bought within the last 155 days — have cooled off their profit-taking activity. This is seen as a healthy signal for the market, which remains in a “relatively balanced position.”
Short-Term Holders Are Holding Back
Glassnode’s latest data shows that only 45% of short-term holders in profit are currently selling their Bitcoin. This number is below the neutral line, meaning fewer people are taking profits than usual. In other words, those who bought BTC recently are choosing to hold on to their coins rather than sell, even after the recent price correction.
This trend is important because short-term holders are usually the first to sell when prices become volatile. Their behavior often causes rapid drops or pumps in the market. The fact that they are now hesitating to sell could be a sign that they expect prices to go higher in the near future.
The Market Is “Relatively Balanced”
According to Glassnode, the overall Bitcoin market is showing signs of stability. About 70% of the short-term holder supply is still in profit, and the number of coins being moved is almost evenly split between those sold for a profit and those sold at a loss.
Glassnode describes this situation as “typical” for mid-phases of bull markets, suggesting there’s no cause for concern. These kinds of mixed signals — some taking profits, others cutting losses — usually appear during consolidation periods, where the price is stabilizing before the next big move.
Bitcoin’s Recent Price Action
Bitcoin reached a new all-time high of $123,100 on July 14, according to Nansen data. But the cryptocurrency later fell to a local low of $112,044 over the weekend. At the time of writing, Bitcoin has recovered slightly to around $114,766.
While this dip may seem like a setback, it’s actually quite normal in bull markets. Sharp price increases are often followed by short-term corrections, which give the market time to cool off before potentially moving higher again.
On-Chain Data Supports Bullish Case
Another on-chain platform, Checkonchain, noted that many of the recent sellers are those who bought Bitcoin near its all-time high. These are often referred to as “weaker hands” — traders who panic when the price drops close to their purchase price.
Checkonchain explained that these recent top buyers are selling just to break even, saying things like, “Get me out.” This behavior can temporarily push prices down, but it also clears out weak positions, which can set the stage for more stable growth.
They added that a quick, small dip into loss territory — followed by a rebound — would be a bullish confirmation that the market still has strong upward momentum.
Outlook Remains Positive for 2025
Despite recent volatility, many analysts remain confident about Bitcoin’s future. Tom Lee, co-founder of Fundstrat and chairman of BitMine, shared his optimistic outlook during a recent podcast interview. He believes Bitcoin could reach $200,000 to $250,000 by the end of 2025, saying:
“I think Bitcoin should really build upon this $120K level before the end of the year.”
While not everyone shares Lee’s bold prediction, the overall sentiment is still mostly bullish. Long-term investors continue to see value in Bitcoin’s limited supply, increasing institutional interest, and growing use as a digital store of value.
Final Thoughts
Bitcoin appears to be in a healthy consolidation phase after reaching record highs. Short-term holders are easing up on their selling, and on-chain data points to a balanced market — both of which are signs that the current bull market may not be over.
If these trends continue and investor confidence holds strong, Bitcoin could be gearing up for its next big move upward in the coming months. Investors are now watching closely to see if $115,000 can act as a solid support level before Bitcoin makes another run at new highs.
As always, while the data is encouraging, crypto remains a volatile space. Smart investors should stay informed and consider both short-term risks and long-term opportunities before making decisions.
