- SOPR shows swift recoveries after brief dips below the neutral threshold.
- U.S. Treasury will hold Bitcoin reserves; no new purchases planned.
- Price consolidates near $120K, with key support levels holding firm.
Bitcoin remained above the $120,000 level after recent gains, with data showing strong commitment among short-term holders. Glassnode data showed that Bitcoin’s Short-Term Holder Spent Output Profit Ratio (SOPR) has stayed resilient in recent months.
The metric briefly dropped below the neutral 1.0 mark, signaling temporary realized losses. These declines were quickly reversed, which Glassnode described as “swift and unsustained undercuts.”
The current cost basis for short-term holders is around $112,000. Analysts noted that the limited downside pressure suggests these investors remain committed to holding above their entry levels. The pattern reinforces support in the market, with selling activity mostly coming from profitable exits rather than panic-driven moves.
U.S. Treasury Confirms No New Bitcoin Purchases
U.S. Treasury Secretary Scott Bessent told FOX Business that the government will not be adding to its Bitcoin reserves. He stated that current holdings, estimated between $15 billion and $20 billion, will be maintained. Bessent added that the government may seek to confiscate additional Bitcoin in the future.
This announcement contrasted with earlier expectations of creating a “strategic Bitcoin reserve.” Analyst Tony Edward from the Thinking Crypto Podcast said convincing Congress to approve such a purchase would be difficult without market structure legislation.
He also questioned the timing, noting that buying at market highs was not advisable. Edward suggested it would be more strategic to acquire Bitcoin during bear markets when prices are lower.
Price Action Points to Consolidation
Bitcoin traded at $120,815, down 0.10% over the last session. Earlier in the week, the price climbed toward $123,822 before retracing. The $122,290 level now acts as immediate resistance. If bulls break this level, a retest of $123,822 could follow.
On the downside, support is near $120,000, with stronger levels at $117,563 and $116,542. Chart data shows strong upward momentum earlier in the week, but selling pressure emerged near recent highs.
The current movement suggests consolidation after the rally, with bulls needing to hold key supports to keep the broader uptrend intact.
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.
