Bitcoin (BTC) Surges to New All-Time High Above $110,000 as Short-Term Holders Distribute Coins

The slight pullback is described as a solid correction, with bulls looking for short-term support. Even with macro uncertainty and elevated U.S. Treasury yields

Bitcoin recently set a new all-time high at about $112,000 before pulling back somewhat to about $107,000. This slight pullback is described by Alphractal Post as a solid correction, with bulls now looking for short-term support. Even with macro uncertainty and elevated U.S. Treasury yields, bullish sentiment throughout the crypto universe remains optimistic and resilient.

This analysis sheds light on how STH Realized Price has shifted during Bitcoin’s surge. At present levels, STHs are distributing coins more aggressively, especially compared to the period when prices were ranging between $60,000 and $80,000.

Chart of STH Realized Price. Source: Alphractal Post

Historically, such increased distribution usually occurs during market peaks, as profit-taking slows down buying momentum. Therefore, this shift could be signaling that Bitcoin is entering the final stages of its current bull cycle.

Currently, STH Realized Price is at $94,500, which is a key level to watch. If this support breaks, then many short-term holders could be accumulating unrealized losses. In contrast, long-term holders appear more confident, with their Realized Price steadily rising to around $33,000. This difference highlights the contrasting strategies employed by long- and short-term market participants during volatile price movements.

Whenever STH Realized Price has previously risen above LTH Realized Price, a new bull market has emerged. This observation underscores the usefulness of blockchain analytics in identifying turning points at a macro level. However, a note of caution is warranted because certain on-chain metrics predict that a correction might appear only after October 2025, which would be a surprising development given the usual halving cycles.

Chart of LTH and STH Realized Price. Source: Alphractal Post

Pruding this further, Daun mentions a critical divergence between Bitcoin and the rest of the altcoin market. While BTC has reached new highs, the TOTAL Altcoin Market Cap remains more than 30% lower than its peak in early 2021.

This statistic showcases how overwhelmingly dominant Bitcoin has been during this cycle, regularly outperforming altcoins in terms of performance and momentum. Furthermore, on-chain data reveals that STHs and miners have been selling coins persistently during this rally.

On the other hand, LTHs are accumulating coins at a good pace, which is usually observed during bull markets as institutions and firms prefer to hold onto their coins for the long term. This fact contributes to the narrative that this bull market is largely driven by institutional capital flowing into Bitcoin.

On the technical side, there is strong horizontal resistance on the TOTAL chart.

Chart of TOTAL Altcoin Market Cap. Source: Alphractal Post

Until this barrier is breached, altcoins can be expected to lag behind. Alternatively, relative strength in BTC can potentially last even longer, depending upon investor attention and capital being centered in BTC as the market leader, thereby holding back a general crypto market breakout.

Bitcoin Consolidates After Reaching $112,000 High

This week's analysis from Bitcoinsbest begins with a chart displaying Bitcoin's breakout above the $109,000 level, which is now serving as support. Having recently hit a high of $112,000, BTC is currently consolidating at $107,500, forming a bullish retest of prior resistance.

High trading volumes and the formation of bullish candle shapes are confirming the strength behind this breakout, indicating persistent upward pressure.

BTC is also trading well above the 34-week EMA at $87,938, which reinforces a solid macro uptrend. All major moving averages - 50, 100, and 200 weeks - are trending upward, which supports the long-term bullish outlook.

Unless a drastic structural shift occurs, Bitcoin's technical and fundamental strength may continue guiding the broader market's direction.