Bitcoin surged past the $97,000 threshold for the first time since early November, yet on-chain data reveals that short-term holders transferred more than 40,000 BTC in realized profits to exchanges in a single day as prices approached this level, signaling that caution rather than conviction continues to dominate sentiment among recent market entrants.
What Happened: BTC Breaks $97K Amid Profit-Taking
The advance follows weeks of consolidation that had fueled bearish narratives and speculation about a broader trend reversal.
Analysts noted that the current move still exhibits characteristics of a technical rebound rather than a confirmed shift in trend.
Short-term holders remain highly reactive to price swings, with many focused on capital preservation after enduring recent drawdowns.
The pattern became evident on Jan. 6, when Bitcoin revisited $94,000 and short-term holders sent more than 30,000 BTC in realized profit to exchanges. That behavior intensified as prices climbed higher.
The realized price for short-term holders currently sits near $102,000, placing the current price closer to their average cost basis—a zone that historically triggers defensive positioning rather than aggressive accumulation.
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Why It Matters: Confidence Remains Fragile
The selling pressure from short-term participants introduces nearby supply that could cap upside momentum, at least until sustained price acceptance above key levels rebuilds conviction.
From a technical standpoint, Bitcoin remains below its declining medium-term moving average, which has acted as dynamic resistance since November's breakdown.
Volume has not expanded meaningfully during the rebound, suggesting the move may still be corrective in nature.
Holding above the $92,000–$94,000 range would strengthen the bullish case and open the path toward $100,000, while failure to consolidate could expose the market to renewed downside pressure.
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