Bitcoin has been pushing past $115,000 in an attempt to recover from recent weakness. The crypto king is currently testing this level as support while trying to break out of a two-month downtrend.
Positive on-chain signals hint at seller exhaustion, which may support the next leg higher.
Bitcoin Is Showing Signs Of Potential Recovery
The Short-Term Holder Realized Value to Transaction Volume (STH RVT) ratio has compressed toward cycle lows. This shows realized profits remain muted compared to Bitcoin’s network valuation. Historically, these resets often occur during periods of market detox, laying the groundwork for healthier, longer-lasting price recoveries.
SponsoredSuch patterns suggest investor activity has cooled, reducing the intensity of speculative trading. When realized profits fall, it often indicates that market participants are waiting for more favorable conditions.
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Macro signals also align with this narrative. Glassnode data shows the Realized Profit/Loss Ratio has dropped from 2.2 to 1.0, reaching the lower band. This adjustment supports the RVT reset, signaling a balance between realized profits and realized losses in Bitcoin’s current trading environment.
With profit-taking and losses now more evenly matched, Bitcoin appears to be entering a neutral phase. Historically, such an equilibrium hints at seller exhaustion, where selling pressure fades, and buyers begin regaining control.
BTC Price May Breakout Soon
Bitcoin is trading at $115,151, attempting to hold $115,000 as a new support level. Securing this area is vital as the cryptocurrency also works to break out of the two-month downtrend that has capped its upward momentum since midsummer.
If conditions improve, Bitcoin could rally beyond $116,096 and approach $117,261. Breaching this level would open the door to $120,000. This would reinforce optimism among traders and institutions anticipating further growth in the crypto king’s valuation.
However, failure to maintain current levels would invalidate the bullish outlook. Bitcoin could fall back to $112,500 or even $110,000, extending the bear run. Such a move would dampen sentiment, signaling renewed vulnerability in the world’s largest cryptocurrency.
