- Short-term profit-taking is the cause of Bitcoin’s drop from $120,000 to $110,000, indicating a normal consolidation within the current bullish cycle.
- Long-term holders who keep their coins for more than six months show that they are still confident, which lowers the possibility of structural weakness during market downturns.
- The market remains in a maturing bull phase; with a 55% probability the cycle top is yet to form amid stable long-term supply.
Bitcoin’s correction shows strength rather than weakness because current market data points to a healthy consolidation phase within an ongoing uptrend. Despite short-term selling activity, long-term holders remain confident and continue to accumulate to support the broader bullish structure.
Short-Term Profit Taking Drives Temporary Correction
In the latter part of 2025, the price of Bitcoin dropped from levels ranging near $120,000 to levels near $110,000. The decline coincided with a notable rise in 0–1 day inflows, suggesting that short-term traders were unloading. The rise in exchange activity typically signals liquidity repositioning ahead of expected volatility.
The short-term shift doesn’t represent overall panic or structural weakness. Instead, it is a normal stage in the cyclical rhythm of the market, where aggressive traders book profits following long rallies. Liquidity adjustments of this kind are essential in sustaining momentum across the broader cycle.
This activity has been consistent with historical patterns observed in maturing bull markets. Temporary corrections driven by new market participants tend to reset overheated conditions without disturbing the underlying trend.
Long-Term Holders Maintain Confidence Amid Pullback
Data reveals that coins held for more than six months remain inactive, suggesting that long-term investors are not participating in the sell-off. If they were exiting positions, visible spikes would appear in older coin age bands, but these remain flat.
Such bear-hugging behavior is testimony to sustained belief in Bitcoin’s long-term worth. Lack of mass selling by experienced holders is a sign of market strength even during periods of corrective decline. The idea that the current correction is a part of a sustainable market cycle is supported by their silence.
During pullbacks consolidating prices before they resume upward momentum, such a trend usually occurs during the middle or mature stages of bull runs. The current situation is comparable to earlier stages of consolidation that subsequently sustained long-term momentum.
Market Outlook Points to Continued Uptrend
Analysts say that Bitcoin may test support in the $102,600 region if short-term selling pressure persists. But since much of the selling is from newer traders, the overall bullish setup still holds good.
Market data suggests that roughly 55% probability exists that the bull market top has not yet been reached. Stable long-term supply and inactive older wallets signal that confidence among committed investors remains firm.
Corrections such as this often act as healthy retracements in advancing markets. With long-term holders maintaining positions and short-term profit-taking largely exhausted, Bitcoin’s structural uptrend continues to display underlying strength.
