Bitcoin Surges 20% to $120,000 as Short-Term Holders Avoid Selling

Bitcoin has recently surged to a new all-time high of nearly $120,000, but market indicators suggest that the price rally may still have further to run. According to CryptoQuant data, short-term Bitcoin holders, defined as those holding for less than 155 days, have not begun heavy profit-taking. These holders bought Bitcoin at an average of around $100,000, and with the current price near $120,000, their gains are roughly 17–18%. However, this has not yet triggered major sell-offs. The SOPR (Spent Output Profit Ratio) orange line remains below the red zone, which is traditionally associated with strong profit realization activity. This behavior indicates reduced selling pressure, helping support the continuation of the Bitcoin run. The current sentiment remains calm, reducing the chances of an overheated market in the short term.

In the derivatives market, open interest in Bitcoin futures is rising, suggesting more capital is entering the market. However, funding rates stay near neutral or only slightly positive, showing that traders are not using excessive leverage. When funding rates spike rapidly, it signals aggressive bullish positioning. The current neutral readings imply that market participants remain cautious. As a result, despite the rapid price increase, the broader sentiment does not appear euphoric. The lack of extreme bullish behavior in derivatives markets helps prevent abrupt corrections, adding another layer of support to the idea that the Bitcoin run is not yet peaking.

The overall market structure remains healthy, with no signs of euphoria or overheating. This structure offers room for the Bitcoin run to extend further before encountering stronger resistance from profit-taking or leveraged positions. If conditions persist, analysts may continue observing this cool yet advancing rally. The combination of stable SOPR levels and modest funding rates suggests that Bitcoin’s momentum is still building, allowing for the possibility of future price appreciation.