This is the crucial level to watch for Bitcoin’s price this week

Short-term Bitcoin traders seem to be sweating over the next breakout.

Amid recovery efforts, Bitcoin (BTC) has risen modestly by 4% over the past 24 hours while trading at around $111,000. Despite last week’s market volatility and subsequent devastating losses, long-term investors are relaxed and profitable.

The same cannot be said for short-term traders who are looking forward to Bitcoin’s recovery above $113K to catch their breath.

Bitcoin’s profit gap is widening

According to Alphractal founder Joao Wedson, Bitcoin’s current market sentiment is split between two different tribes. The calm veterans and the nervous newcomers. Long-term holders (LTHs) remain unaffected; their unrealized gains are still comfortably in the green. They’ve seen it all before, and for them the real worry only starts when BTC drops below $37,000. That threshold remains well removed from current levels.

Short-Term Holders (STHs), on the other hand, are reeling from losses and praying for a bounce above the $113,200 mark. Ironically, that same level could become a battleground, as a breakout would return profits to many STHs, but it could also trigger waves of profit-taking, further blunting the upside momentum.

Structurally, Bitcoin’s NUPL metric validates the idea of ​​this gap. This is because the long-term conviction remains intact while the LTH/STH SOPR ratio is maintained paint an image of changing behavior. LTHs appear to be easing their selling pressure and allowing the market to breathe, while STHs are still looking for short-term gains. This setup is reminiscent of late 2021, when new all-time highs were forged.

The latest market conditions suggest that while the old guard is riding on past victories, the restless crowd still has something to prove.

“LTHs have already reaped a good chunk of their profits – in March 2024, December 2024 and more recently, around the last ATH. Now they are relaxed and probably enjoying some time on a yacht with their families. Meanwhile, STHs are anxiously watching the charts, hoping that Bitcoin will break above $113,000 so they can finally smile again.”

Impact of easing tensions between the US and China

Now that Bitcoin has successfully recaptured the key support zone of $109,000-$110,000, a level that previously acted as a crucial pivot in the recent market structure, says crypto analyst Ted Pillows believes that the next major hurdle lies at $112,000, a breakout above which could open the way for renewed bullish momentum.

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Pillows believes that current macroeconomic conditions further strengthen BTC’s potential upside, especially as trade tensions between the US and China appear to be easing. The reduction in geopolitical tension could boost investor confidence in risky assets, including crypto, by soothing global risk sentiment that had previously dampened speculative appetite.