Bitcoin News Today: Institutional Exodus Mirrors 2021 as Bitcoin Hits $120K

Bitcoin cleared the $120,000 threshold for the first time since August 2025, signaling a potential new accumulation phase driven by easing long-term holder (LTH) selling pressure and stabilizing short-term holder (STH) dynamics. On-chain data from platforms like Glassnode and CryptoQuant indicates that speculative excess has cooled, with the Short-Term Holder Realized Value (RVT) ratio compressing since May 2025. This trend, historically associated with market detox phases, suggests short-term traders are absorbing fewer profits relative to network activity, creating conditions for renewed accumulationFresh Bitcoin Accumulation Set To Take Place At $120K^[1]. The LTH Net Position Change (3D) metric, which had shown months of consistent distribution, has shifted to neutral territory, indicating that heavy profit-taking during recent rallies may be taperingFresh Bitcoin Accumulation Set To Take Place At $120K^[1]. Institutional inflows and exchange-traded funds (ETFs) are now emerging as dominant drivers of near-term momentum, with $8 billion in BTC withdrawn from exchanges over recent weeks-the largest accumulation signal in eight monthsBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2].

The structural base forming in the $115,000 to $120,000 range mirrors consolidation patterns observed in March and April 2025, where neutralized LTH flows preceded sharp upward movements. With LTH distribution waning and STH excess unwinding, analysts suggest the market may be preparing for a decisive breakout attempt, with $120,000 acting as a critical thresholdFresh Bitcoin Accumulation Set To Take Place At $120K^[1]. Short-term holder stress metrics, such as the STH-SOPR (Supply-Adjusted Profit/Loss Ratio), dipped to 0.992 in September 2025, reflecting consistent loss realization. However, the metric rebounded to 0.995 in late September, signaling early stabilization and potential market resilience ahead of a new bullish legFresh Bitcoin Accumulation Set To Take Place At $120K^[1].

Institutional activity has further reinforced optimism. Glassnode data highlights a 70,956 BTC ($8 billion) withdrawal from exchanges, a pattern similar to pre-2021 bull market accumulation phases. Analysts note that such exchange outflows historically precede significant price movements, with similar patterns in 2020-2021 correlating to a 300% rally over 12 monthsBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2]. Meanwhile, declining Coin Days Destroyed metrics indicate long-term holders are slowing sales, reducing downward pressure on the priceBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2]. The Coinbase Premium turning positive in late 2025 also suggests resurgent U.S. institutional demandBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2].

Market sentiment remains divided but leans bullish. A CoinGecko survey revealed 60% of respondents view institutional adoption positively, despite 20.5% expressing concerns over Bitcoin's decentralized ethosBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2]. Technical analysis suggests a 45% probability of a $118K–$120K breakout, contingent on sustained buying pressure above $112K resistance. Conversely, a bearish reversal to $105K remains a risk if macroeconomic conditions deteriorateBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2]. Key technical levels to watch include $112,000 (resistance), $113,947 (20-day moving average), and $108,600 (support). A decisive break above $112K with strong volume could validate the next leg upBitcoin Price Prediction 2025: Will BTC Hit $120K This …^[2].

The broader implications of Bitcoin's price action extend beyond speculative trading. As the cryptocurrency attracts both retail and institutional investors, the stabilization of STH positions may lay the groundwork for sustained growth. Analysts emphasize that the convergence of traditional finance and crypto infrastructure, coupled with evolving regulatory frameworks, will shape Bitcoin's trajectory in the coming months. While the $120K level marks a psychological milestone, the market's ability to maintain momentum will depend on continued institutional participation and macroeconomic stabilityBitcoin Surges Past $120K, Signaling Fresh Accumulation Phase^[3].