Bitcoin’s decline from $120K to $110K stems from short-term profit taking, showing a natural consolidation within the ongoing bullish cycle. Long-term holders retaining coins beyond six months indicate continued confidence, reducing the likelihood of structural weakness during market corrections. 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 signals strength rather than weakness, as current market data points to a healthy consolidation phase within an ongoing uptrend. Despite short-term selling activity, long-term holders remain confident, supporting the broader bullish structure through steady accumulation.
Short-Term Profit Taking Drives Temporary Correction
During the latter half of 2025, Bitcoin’s price dropped from around $120,000 to approximately $110,000. The decline coincided with a noticeable surge in 0–1 day inflows, suggesting that short-term traders were taking profits. This rise in exchange activity typically reflects liquidity repositioning ahead of expected volatility.
The short-term movement does not indicate widespread panic or structural weakness. Instead, it represents a normal phase within the market’s cyclical rhythm, where active traders realize gains after extended 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 holding behavior reflects continued conviction in Bitcoin’s long-term value. The absence of large-scale selling among seasoned holders indicates market resilience, even during corrective phases. Their silence supports the notion that the ongoing correction is part of a sustainable market cycle.
This pattern typically emerges in the mid or mature stages of bull markets, where pullbacks help stabilize prices before renewed upward movement. The current environment mirrors previous consolidation periods that ultimately strengthened long-term momentum.
Market Outlook Points to Continued Uptrend
Analysts observe that Bitcoin may test support near the $102,600 region if short-term selling pressure persists. However, since most selling originates from newer traders, the broader bullish structure remains intact.
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.