Bitcoin (BTC) Price Breaks Above $112,000, Heads Towards $120,000

Bitcoin (BTC) has broken through the $112,000 resistance that has held it back for weeks and is now trading at $115,104. Meanwhile, the market is giving bullish signals

Let's figure out what's happening in the Bitcoin (BTC) market and what to expect from the cryptocurrency price.

Bitcoin Holder Confidence Reaches 2025 High

According to Glassnode, Bitcoin holders are not losing confidence, with the coin holding rate steadily rising since August 6. At the time of publication, the figure is 80.49%, the highest since the beginning of the year. Its growth is notable, as the cryptocurrency was moving sideways in August and could not gain sufficient momentum.

That is, more investors preferred not to exit positions during the decline, but to wait out the consolidation phase. This underlines the confidence of market players in the long-term prospects of BTC.

BTC Hold Rate. Source: Glassnode

Optimism among derivatives traders is also growing, with implied leverage ratios (ELR) currently increasing across all exchanges. The figure is currently at 0.26, the highest since the start of the year.

An increase in ELR indicates that traders are increasing their leverage, demonstrating confidence and risk appetite.

ELR Dynamics for BTC. Source: CryptoQuant

BTC Rally Depends on Confidence

If derivatives traders remain confident and continue to hold positions, BTC's current rally could deepen and reach $119,367. Breaking this level would clear the way for $122,190.

BTC Price Analysis. Source: TradingView