Amidst recovery attempts, Bitcoin (BTC) has made a modest surge of 4% over the past 24 hours as it trades just around $111,000. Despite last week’s market volatility and the subsequent devastating losses, long-term holders are relaxed and profitable.
The same cannot be said for short-term traders who are eyeing Bitcoin’s rebound above $113K to breathe again.
Bitcoin’s Profit Divide Widens
According to Alphractal founder Joao Wedson, Bitcoin’s current market mood is split between two distinct tribes: the calm veterans and the nervous newcomers. Long-Term Holders (LTHs) remain unfazed, their unrealized profits still comfortably in the green. They have seen it all before, and for them, the real concern does not even begin unless BTC slips below $37,000. That threshold remains comfortably distant from current levels.
Short-Term Holders (STHs), on the other hand, are nursing losses and praying for a revival above the $113,200 mark. Ironically, that same level could become a battleground as a breakout would return many STHs to profit, but it could also trigger waves of profit-taking, thereby muting further upside momentum.
Structurally, Bitcoin’s NUPL metric validates the idea of this divide. This is because long-term conviction remains intact, while the LTH/STH SOPR Ratio paints a picture of changing behavior. LTHs appear to be easing off their selling pressure and are letting the market breathe, while STHs are still clawing for short-term gains. This setup is reminiscent of late 2021, when fresh all-time highs were forged.
The latest market condition suggests that while the old guard is coasting on earlier wins, the restless crowd still has something to prove.
“LTHs have already locked in a good share of their profits – in March 2024, December 2024, and more recently, near the last ATH. Now, they’re relaxed, probably enjoying some time on a yacht with their families. Meanwhile, STHs are anxiously watching the charts, hoping for Bitcoin to break above $113K so they can finally smile again.”
Impact of Easing US-China Tensions
Now that Bitcoin has successfully reclaimed the key $109,000-$110,000 support zone, a level that had previously acted as a crucial pivot in recent market structure, crypto analyst Ted Pillows believes that the next major hurdle lies at $112,000, a breakout above which could open the path for renewed bullish momentum.
Pillows believes that the current macro backdrop adds further tailwinds to BTC’s potential upside, especially as US–China trade tensions appear to be easing. The reduction in geopolitical strain could boost investor confidence across risk assets, including crypto, by softening the global risk-off sentiment that had previously dampened speculative appetite.