Bitcoin Price Drops to $98K but Recovers as Long-Term Holders Remain Steady

Bitcoin’s price briefly dipped to $98,000 but has since rebounded above $100,000. Despite investor concerns, on-chain data from CryptoQuant suggests long-term holders remain steady, indicating potential consolidation before a possible upward movement. While the volatility linked to geopolitical issues has created caution, the structure seems to be stable, suggesting bullish trends may continue as Bitcoin consolidates between key resistance levels.

Bitcoin’s recent price drop to nearly $98,000 over the weekend had investors worried, but it quickly rebounded above the $100,000 mark. Many in the market are speculating about a possible double top forming near the all-time high. Despite this caution, on-chain data indicates that the downturn may just be a phase of consolidation rather than a full reversal of trends.

CryptoQuant’s latest data shows no red flags from long-term holders (LTHs), who seem mostly inactive even amidst the market’s ups and downs. The 30-day moving average of Binary Coin Days Destroyed (CDD) is steady, showing a reading that dropped to around 0.6—historically, anything above 0.8 has indicated an overheated market and foreshadowed bigger corrections. The current level suggests that the market is not yet on fire and may actually be gearing up for its next move.

What’s interesting here is that it appears Bitcoin is going through a phase of quiet accumulation. If the past is any guide, such periods often come just before significant price increases. The price remaining stable above $100K, combined with a lack of aggressive selling from long-term holders, suggests a potential market reset instead of a downward spiral.

With Bitcoin trading about 10% lower than its all-time high, market bulls are eager to drive the price upwards. The ongoing tensions in the Middle East have stirred volatility, yet the market structure seems to remain largely intact. It continues to hover above the critical $100,000 level; the cautious sentiment observed does not change the on-chain indicators that imply stability and healthy consolidation instead of a full correction.

CryptoQuant’s analysis reinforces the idea that long-term holders still believe in Bitcoin. The CDD has seen a decline from its peak of roughly 0.6, which typically suggests less excitement and reduced likelihood of selling pressure. Past trends indicate that the market is likely preparing for stronger movements once this consolidation phase ends and volatility stabilizes.

It’s crucial not to interpret this pullback as the end of the current upswing. Bitcoin has historically moved in a stair-step pattern, bouncing back and forth between consolidation and price spikes. At this point, while many uncertainties loom—like rising Treasury yields and geopolitical risks—this quieter phase might very well be laying the groundwork for the next big rally. Though caution is essential, the support from long-term holders keeps the general outlook positive for bullish market movements.

Looking at the price action, Bitcoin holds steady above that all-important $100,000 level, signalling a solid macro uptrend despite recent bumps. After its weekend dip, Bitcoin managed a swift recovery and is now consolidating between resistance levels of $103,600 and $109,300—marks it needs to break decisively to maintain upward momentum.

At the moment, Bitcoin is trading around $101,200, just shy of breaking through the first resistance at $103,600. If it can close the week above this point, things could turn bullish and open paths toward the $109,300 local high. However, persistent rejection here might prolong the consolidation phase and could even lead to some downside stress if global tensions worsen.

On the lower side, Bitcoin has solid support from the 50-week simple moving average, currently sitting at $85,025. This trend of higher lows since early 2024 indicates that what we’re seeing right now might just be part of a larger consolidation within the bullish cycle. Trading volume remains moderate with no signs of extreme market emotions like capitulation or euphoria. Until a breakout is observed, Bitcoin seems to be in this balanced mid-cycle consolidation, gathering strength for its next journey.