$Bitcoin’s recent pullback has brought the spotlight onto a crucial support level, with analysts pointing to $112,000 as the line in the sand for short-term sentiment. The move comes just hours before Federal Reserve Chair Jerome Powell delivers his much-anticipated remarks at the Jackson Hole Symposium.

Short-Term Holders Take Center Stage

According to on-chain data highlighted by analyst Murphy via BlockBeats, Bitcoin’s decline to $112,000 perfectly aligns with the average cost basis of coins held for less than three months. This metric, known as the short-term holder (STH) cost basis, often serves as a barometer for speculative sentiment.

“When BTC stays above the STH cost basis, short-term players remain confident and tend to support price floors,” Murphy explained. “But once it breaks below, pessimism quickly builds, leading to sharper sell-offs.”

Investor Mood: Anxiety Without Panic

Despite the correction, analysts note that selling pressure has started to cool. The market has shifted into a state of cautious observation rather than outright fear. Investors appear anxious, but the absence of panic selling suggests that many are willing to hold the line at $112,000 until more macro clarity arrives.

This behavior reflects the delicate balance between technical support and external catalysts — in this case, Powell’s speech.

Macro Context: All Eyes on the Fed

The Jackson Hole Symposium has historically been a pivotal moment for global markets, and 2025 is proving no different. Powell’s comments on the U.S. interest rate trajectory are expected to ripple across risk assets, including cryptocurrencies.

Bitcoin’s stability at $112,000 suggests that traders are positioning cautiously ahead of the event, keeping volatility contained for now.

What’s Next for BTC?

Hold Above $112K → Stability could persist, keeping Bitcoin range-bound between $112K–$115K.

Break Below Support → Sentiment shift likely, opening the door for deeper downside pressure.

Fed Signals Dovish Tilt → A rebound beyond $115K becomes plausible as risk appetite returns.

Bottom Line

Bitcoin’s resilience at the $112,000 mark underscores the importance of short-term holder behavior in shaping near-term price action. With Powell’s words set to guide market direction, this level has become a critical battleground between caution and conviction.