Amidst recovery attempts, Bitcoin (BTC) has surged 4% in the last 24 hours, hovering around $111,000. In contrast to last week’s market turmoil and losses, long-term holders remain unperturbed and profitable.

Bitcoin’s Profit Divide Widens

According to Joao Wedson, founder of Alphractal, the sentiment surrounding Bitcoin is polarized between two distinct groups: seasoned holders and anxious newcomers. Long-Term Holders (LTHs) are calm and still enjoying gains, seeing no worry until Bitcoin dips below $37,000. This threshold lies comfortably distant from current rates.

Conversely, Short-Term Holders (STHs) face losses and are hoping for a climb past $113,200 to regain profitability. Paradoxically, this level could also become contested territory as a breakout might invite profit-taking, thus stifling further upward momentum.

The NUPL metric for Bitcoin underscores this divide. While long-term conviction prevails, the LTH/STH SOPR Ratio illustrates a shift in behavior. LTHs are easing their selling pressure, allowing the market to stabilize, while STHs continue their pursuit of immediate profits, reminiscent of late 2021 when new heights were achieved.

This current market environment suggests that while long-term investors enjoy their previous profits, newer traders are eager to prove their mettle.

“LTHs have already locked in a good share of their profits – in March 2024, December 2024, and more recently, near the last ATH. Now, they’re relaxed, probably enjoying some time on a yacht with their families. Meanwhile, STHs are anxiously watching the charts, hoping for Bitcoin to break above $113K so they can finally smile again.”

Impact of Easing US-China Tensions

With Bitcoin successfully reclaiming the critical $109,000-$110,000 support zone—previously a vital pivot—the analyst Ted Pillows anticipates that the next major resistance is at $112,000, where a breakout could ignite bullish momentum.

Pillows also observes that easing US–China trade tensions may bolster investor confidence across risk assets, including crypto, alleviating the global risk-off sentiment that previously hampered speculative interest.