Bitcoin has started the year with steady strength, printing two higher highs and briefly reaching the $98,000 area. The move has improved sentiment after months of choppy action. Still, the rally has now reached a price zone that has repeatedly capped upside in the past, putting the market at an important decision point.
Data shared by Glassnode shows Bitcoin is in a tight range owned by the long-term buyers who bought from April to July 2025. This is with the asset facing selling near the highs of the last market cycle. After bouncing from November lows, rallies have repeatedly hit resistance between $93,000 and $110,000.
Long-term holder cost basis heatmap shows that rebounds haven’t kept going once price enters this range. Sellers keep stepping in to stop a clear recovery in trend. This zone has separated past cycles into correction and lasting bull runs. Bitcoin again checks whether demand is strong enough to absorb supply from holders who bought at higher prices earlier.
Confidence Hinges On Short-Term Holder Support
With the selling pressure from the older coins coming back, attention is on the short-term holder cost basis-approximately $98,300. That is the average price that newer buyers have paid and often acts like a confidence indicator. Staying above it means recent demand is strong enough to keep people in profit.
Historically, Bitcoin had to regain and remain above this level to set higher upward trends. If it can’t, buyers tend to back away and sell into any price slippage. In this scenario, remaining above the $98,300 level in sideways movement is important for the continuation of the upward momentum and to avoid falling back into a range-bound pattern.
Selling Slows As Demand Takes Center Stage
Yet, long-term holders are selling, just really slowing down. Currently, approximately 12,800 BTC per week is being realized as profit, well below the over-100,000 BTC per week seen earlier in the cycle. The consequence of this slowdown means that people are taking profits but not in a rush.
At the same time, institutional money seems to be stabilizing. Spot Bitcoin ETFs have turned positive again and are a steady source of demand after months of outflows. Some exchange data also shows improving spot activity, with Binance back to net buying and selling pressure on Coinbase easing.
Also Read: Bitcoin Whales Add 30,000 BTC as On-Chain Data Confirms Accumulation
