Bitcoin’s drop toward $113,000 has stirred anxiety in the market, but on-chain data indicates the move may be part of a healthy reset rather than the start of a prolonged decline.
Glassnode’s Short-Term Holder Spent Output Profit Ratio (STH-SOPR) reveals that BTC remains far from the overheated red-line levels that have historically marked local tops.
Swissblock analysts highlight that the metric is holding within a “healthy reset” range, reflecting reduced profit-taking pressure among recent buyers. Historically, such phases have given the market room to rebuild momentum before resuming an uptrend.
Short-Term Trading Activity Shows Loss Realization
TradingView data shows Bitcoin consolidating at around $113,700 after a week-long sequence of lower highs and lower lows. The short-term SOPR stands at 0.34, meaning the majority of recent transactions are taking place at a loss. In past cycles, this has often signaled capitulation among weak hands, paving the way for stronger buyers to step in.
RSI Suggests Neutral Momentum with Downside Risk
The Relative Strength Index (RSI) is currently hovering between 43 and 47—slightly below the neutral 50 mark. This positioning suggests mild bearish pressure but no immediate signs of extreme overselling. Price stability in this zone could encourage sidelined buyers to re-enter, particularly if sentiment shifts back toward risk-taking.
Key Levels to Watch
Bitcoin faces immediate resistance around $116,000, where previous rallies have stalled in recent sessions. A decisive close above this level could reignite bullish momentum toward $120,000. On the downside, failure to maintain support near $113,000 may open the door to a deeper pullback toward $110,000, where stronger demand is expected to emerge.
Market Context
While BTC remains in a cooling phase, broader market sentiment has been tempered by profit-taking among high time frame holders and slowing momentum across top altcoins. However, the combination of low SOPR readings and neutral RSI conditions suggests a setup where accumulation may resume if macro conditions remain favorable.
For now, the technical and on-chain picture points to consolidation rather than capitulation – a phase that, if history is any guide, could be the prelude to Bitcoin’s next major leg higher.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
Source: https://coindoo.com/market/bitcoin-price-pullback-is-normal-not-the-end-of-the-rally/