Bitcoin is currently valued in the $122,000 price region, following an impressive price surge last week. In particular, analysts speculate that another accumulation phase may have begun, leading to strong bullish sentiment, especially among crypto market leaders. On the on-chain analysis page, SwissBlock currently provides insight into potential drivers of profit or loss and provides a detailed analysis of current market conditions.
BTC dips constructive reset at $108,600
Earlier this month, Bitcoin dropped sharply from $117,000 to $108,600, causing a deeper fear of correction. The market has since recovered, but the Swiss block explains that some on-chain indicators show a breakdown in movement and a constructive reset. The concept of “reset, not reset” is important as the market can wash away excess leverage, absorb sellers with weak hands, and create room for fresh demand. SwissBlocks explains that this was exactly what happened in the $114,000-118,000 range, and that many later buyers in August were looking for an exit. Their supply was absorbed, clearing clusters of resistance and unlocking the path to retesting its all-time highs. In particular, this price decline highlighted Bitcoin's short-term holder (STH)-based resilience. GlassNode data shows that the average purchase price for STH cost-based or recent buyers is around $111,600. This level has been defended five separate times since May, making it an important pivot point in the current market cycle.
Long-term action drives bullish shifts, but negative risks remain
At the same time, SwissBlock points out that long-term holders (LTHS) are significantly slowing their distribution rates. They continue to sell, but the pace is far less intense than in the previous months. This cooling of supply pressure allows new participants to accumulate less resistance. Historically, such phases have shown a transition from distribution to accumulation, creating structural stability and setting bullish continuity.
However, there remains a downside risk in that a heavy sales revival could lead to balance and reintroduce vulnerabilities. However, as long as Bitcoin avoids slipping into a risky regime, the outlook supports resilience and potential for upside down.
At the time of writing, Bitcoin traded at $122,052, reflecting a mere 1.47% increase over the last 24 hours. Daily trading activities have also skyrocketed by 19.28%, strengthening the strength and momentum behind the ongoing market rally. Its market capitalization is $2.43 trillion, and Bitcoin continues to rank as the world's largest cryptocurrency and fifth-largest asset.
Flickr featured images, TradingView charts
