🔸️The consolidation phase for Bitcoin continues as traders target the liquidity area at $115,000 for a potential retest.
Glassnode indicates a "healthy but fragile" market where profitability metrics are declining after BTC reached $123,000.
The exhaustion of sellers is increasing, indicating a potential for another rise.
The price of Bitcoin is consolidating near $118,000 with liquidity rising at $115,000.
🔸️Bitcoin (BTC) continues to consolidate below $120,000 after reaching its all-time high of $123,000 last week, with on-chain data and trader sentiment pointing to a potential decline toward the $115,000 level.
The on-chain analytics firm Glassnode described the current price movement as "a healthy but fragile balance," noting in its latest reports that profit-taking and trading within a certain range are likely to continue before a new push higher.
🍀BTC profitability declines, the market calms after ATH
Glassnode highlighted that profitability metrics have started to decline, with the realized profit-to-loss ratio dropping from 3.9 to 2.6 - a sign that some investors have begun to reduce risk after recent gains.
"The shift indicates a market resetting itself after the recent ATH, with investors adopting a more balanced stance amid the reduced intensity of the rally," said Glassnode.
Despite the downturn, the analytical firm stated that the profit supply ratio remains in the "euphoria zone," indicating that most holders are still in profit. However, momentum is slowing.
Analysts say BTC's price may retest $115,000 before the next move.
The market participants' focus is increasing on the range of $115,000 - $118,000 as a potential floor for Bitcoin's next move.
Cryptocurrency trader Daan Crypto Trades pointed to $115,000 as the largest liquidity pool, stating, "The longer BTC stays near $118,000, the more positions are formed on both sides - acting as fuel for either a breakout or a breakdown."
"Watch these local tops and bottoms for potential liquidity withdrawals," they added on X, noting that most of the BTC trading volume has occurred around $118,000, forming a midpoint level of support and resistance in the short term.
Will the exhaustion of sellers lead to the next Bitcoin rally?
Despite the momentum decline, Glassnode remains optimistic, noting that the exhaustion of sellers has begun, which may pave the way for a resumption of the upward trend.
"If the profitability decline continues, the market may move into a wider consolidation phase. But if the exhaustion of sellers continues, Bitcoin may be ready for another rise," reports stated.
Historical data from Q2 shows that liquidity-driven price withdrawals often precede strong rallies, and the current consolidation phase may be a setup for the next explosive breakout - possibly towards $130,000 and beyond if upward momentum returns.