- Bitcoin trades below the $113.1K cost basis amid signs of demand slowdown.
- Long-term holders have been distributing over 22K BTC daily since July 2025.
- Elevated volatility and increasing put premiums reflect defensive market sentiment.
The Bitcoin market is navigating a cautious phase, according to a recent analysis by Glassnode. The latest data highlights Bitcoin trading below key cost basis levels, signaling potential demand exhaustion. The “Percent Supply in Profit” chart, spanning from mid-2019 to mid-2025, shows a fluctuating trend where over 85% of the supply has historically been in profit during bullish phases.
However, recent drops below the short-term holders’ cost basis of approximately $113.1K suggest fading momentum, with long-term holders selling into strength at rates exceeding 22K BTC per day since July 2025. This profit-taking pressure is testing market stability, potentially paving the way for a prolonged consolidation phase.
Glassnode Data Shows Heavy Long-Term Holder Profit-Taking
The options market further reflects this defensive stance, with open interest hitting an all-time high and a rising put skew indicating heightened demand for downside protection. Implied volatility remains elevated at around 48, a sharp increase from recent lows, while realized volatility has surged to 44.1% over 30 days.
This shift marks the end of a low-volatility regime, putting pressure on volatility sellers and amplifying short-term price swings. Despite a recent 6% rally to $113.9K, traders are hedging rather than chasing upside, with premiums on $105K puts increasing as a safety net.
Key Levels and Market Outlook for Bitcoin Investors
For investors, this transitional phase underscores the need for renewed spot demand to stabilize Bitcoin’s trajectory. The market’s current structure, combined with persistent distribution by long-term holders, suggests a critical juncture. Recovery may hinge on breaking above the $113.1K threshold, but failure could see prices test lower support levels near $97.5K. As the crypto community watches closely, these on-chain and off-chain signals offer a data-driven roadmap for navigating the weeks ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
