"Bitcoin [BTC] price has reached new yearly highs near $111K"

Bitcoin's [BTC] price has reached new yearly highs near $111K, yet the number of small investor addresses holding less than 1 BTC has dropped sharply

Bitcoin [BTC] has now reached new yearly highs of around $111K. However, the number of small investor addresses holding less than 1 BTC has dropped sharply.

Bitcoin [BTC] has now reached new yearly highs of around $111K. However, the number of small investor addresses holding less than 1 BTC has dropped sharply.

It fell from 590,000 in 2021 to just 260,000 today. This lack of excitement among everyday investors is striking, especially as price action strengthens.

Large investors and long-term holders are driving this rally, not retail buyers. Of course, the breakout’s reach remains limited unless smaller traders return to the market.

Is Bitcoin’s breakout above $110K truly sustainable?Bitcoin has now fully cleared the high-congestion supply zone between $105K and $110K.

At the time of writing, BTC is trading at $110,510. This marks a major technical breakout, pushing the price above a strong resistance level that previously triggered several pullbacks.

At the time of writing, BTC is trading at $110,510. This marks a major technical breakout, pushing the price above a strong resistance level that previously triggered several pullbacks.

However, the RSI on the daily chart has climbed above 77, indicating overbought conditions. Typically, such RSI readings often warrant a cool-down in price.

However, the RSI on the daily chart has climbed above 77, indicating overbought conditions. Typically, such RSI readings often warrant a cool-down in price.

But bullish trends can remain in this range during strong uptrends. Hence, the breakout may hold if demand remains strong, especially if profit-taking pressure stays minimal.

Has BTC cooled off enough as the NVT Golden Cross dips?The NVT Golden Cross dropped by 49.46%, resting at 0.79.

This signals that Bitcoin’s price is no longer outpacing on-chain transaction value as aggressively as before. In previous cycles, such a drop in the NVT Golden Cross reduced the likelihood of encountering short-term price tops.

This signals that Bitcoin’s price is no longer outpacing on-chain transaction value as aggressively as before. In previous cycles, such a drop in the NVT Golden Cross reduced the likelihood of encountering short-term price tops.

Therefore, this signals a lower risk of overheating and supports a healthier rally.

Meanwhile, Weighted Sentiment spiked to 5.15—a high level, reflecting crowd euphoria.

Historically, such a high level of sentiment often precedes periods of consolidation or reversals, especially if it’s not supported by retail traders.

Without sufficient retail traction, these sentiment spikes tend to unwind. Traders should be prepared for short-term corrections if momentum slows down.

Is BTC becoming overvalued as the NVT ratio skyrockets?The NVT ratio surged to 374.17, which indicates a growing disconnect between Bitcoin’s Market Cap and its Transaction Volume.

Generally, high NVT levels can sometimes suggest overvaluation, especially when not accompanied by a rise in network activity.

Generally, high NVT levels can sometimes suggest overvaluation, especially when not accompanied by a rise in network activity.

Therefore, this metric warrants caution. If transaction volume fails to pick up, the market might experience valuation-based pullbacks.

However, it’s worth noting that in bull markets, the NVT Ratio can remain elevated for extended periods. It’s more of a caution flag than a complete indicator to halt the rally.

Are holders signaling long-term belief as short-term speculation drops off?Realized Cap HODL Waves (0–1 day) dropped to just 0.33, indicating that recent activity is not driven by short-term flippers. This metric shows minimal movement from new buyers.

This statistic highlights the presence of long-term holders in the current market.

Historically, low wave activity correlates with strong hands and supports sustained uptrends.

Historically, low wave activity correlates with strong hands and supports sustained uptrends.

This suggests that the rally has a stable foundation, at least for now.

This suggests that the rally has a stable foundation, at least for now.

Combined with the reduced NVT Golden Cross, the conviction of holders strengthens the bullish case despite other mixed signals.

Bitcoin’s breakout and strong on-chain support present promising signs. However, the lack of retail participant