Bitcoin remains above the $120,000 level following recent gains, with data indicating confidence among short-term holders.
Resilience of Short-Term Holders
Data from Glassnode shows that the Short-Term Holder Spent Output Profit Ratio (SOPR) has remained robust in recent months. The metric briefly dipped below neutral levels but quickly recovered, indicating limited losses among new investors. 'New Bitcoin holders are willing to defend their cost basis,' experts commented. The current cost basis for short-term holders is around $112,000.
U.S. Treasury Confirms No New Bitcoin Purchases
U.S. Treasury Secretary Scott Bessent stated that the government will not be increasing its Bitcoin reserves. Current holdings are estimated between $15 billion and $20 billion. Bessent noted that the government may look to confiscate additional Bitcoin in the future. Analyst Tony Edward from the Thinking Crypto Podcast expressed doubts about Congress approving such a purchase without prior market structure legislation.
Price Dynamics of Bitcoin
Bitcoin is currently trading at $120,815, down 0.10% from the previous session. Earlier in the week, the price climbed to $123,822 before retracing. The $122,290 level now serves as immediate resistance. If bulls manage to break this level, a retest of $123,822 could follow. Support is near the $120,000 level, with stronger support at $117,563 and $116,542. Current movements suggest consolidation after the rally.
Bitcoin shows resilience amidst market expectations and challenges, highlighting confidence among short-term holders. Future price data and government actions will indicate how the situation will evolve in the market.
