Bitcoin News Today: Bitcoin Consolidates in Mid-Bull Cycle Amid Key Resistance Test

Bitcoin continues to demonstrate signs of a mid-bull market, according to a recent report by blockchain analytics firm Glassnode. The analysis suggests that the recent price pullbacks do not signal the end of the current bullish cycle, but rather a consolidation phase typical of mid-cycle dynamics. Glassnode bases its assessment on key metrics, including the Short-Term Holder (STH) cost basis, which currently stands at $106,100. Bitcoin remains above this level, a historically significant threshold distinguishing bullish from bearish environments [1].

The price trajectory has seen Bitcoin fall from its peak of $123,000 in mid-July to $111,000 in early August before rebounding above $116,000. Glassnode highlights that such dips are not unusual during the middle of a bull run and that the market structure resembles patterns observed in similar periods in the past. For example, Bitcoin retested and moved back above the STH cost basis in April 2025, following a correction that pushed prices below $90,000 in late February [1].

Glassnode also pointed out that Bitcoin is currently struggling to break above the average entry price of its short-term top buyers, which is around $116,900. Failing to surpass this level could lead to prolonged consolidation or a further decline toward the $110,000 range. The firm emphasized the importance of this psychological and technical resistance level in determining whether the bull trend will continue [1].

In addition to this, Glassnode observed accumulation activity from both large whale investors—those holding over 10,000 BTC—and retail investors with less than 1 BTC. Over the past 15 days, these groups have been steadily increasing their Bitcoin holdings, using the recent dip as an opportunity to add to their positions. During the price recovery from $112,000 to $114,000, buyers absorbed approximately 120,000 BTC. However, the firm noted that the supply between $110,000 and $116,000 remains limited, meaning consistent buying is essential to establish a strong foundation [1].

Swissblock, another market research firm, corroborated the view that the current correction is a healthy adjustment rather than a sign of structural weakness. It highlighted that net realized profit and loss has declined sharply, but selling pressure remains low. Similarly, the SOPR (Sold Profit Ratio) metric is trending downward rather than collapsing, suggesting investors are taking profits selectively rather than panic-selling. This behavior aligns with a constructive market reset and reinforces confidence in the broader uptrend [1].

Glassnode’s analysis underscores that while Bitcoin faces near-term challenges, the overall structure of the market remains bullish. The key for investors lies in monitoring the STH cost basis and the resistance level around $116,900. Continued accumulation by both institutional and retail participants, along with low selling pressure, supports the view that the bull market is still in progress, not in decline. Market participants are advised to remain cautious but optimistic, as the next phase of Bitcoin’s price action will depend on whether buyers can establish a stronger footing above current resistance [1].

Source:

[1] Glassnode Explains Why Bitcoin Still Sits in the Middle of a Bull Market, Not the End (https://thecryptobasic.com/2025/08/07/glassnode-explains-why-bitcoin-still-sits-in-the-middle-of-a-bull-market-not-the-end/?utm_source=rss&utm_medium=rss&utm_campaign=glassnode-explains-why-bitcoin-still-sits-in-the-middle-of-a-bull-market-not-the-end)