Bitcoin Shatters $112,000 Barrier: Hodlers Triple Down as $120,000 Target Looms

Bitcoin just bulldozed through the $112,000 resistance wall—now traders are eyeing a swift return to the $120,000 threshold.

Hodlers Double Down

Long-term holders aren't just holding—they're accumulating more. While traditional finance scrambles to catch up, Bitcoin's relentless climb continues to defy skeptics and delight believers.

Market momentum suggests this rally has legs. The $120,000 mark isn't just a psychological barrier—it's the next logical step in Bitcoin's ascent. And with institutional adoption accelerating, even the most cynical Wall Street veterans are starting to pay attention—though they'll probably still call it a 'bubble' right until they finally FOMO in.

Bitcoin Holder Conviction Hits 2025 High

According to data from Glassnode, Bitcoin (BTC) holders continue to display conviction, with the coin’s Holder Retention Rate climbing steadily since August 6. At press time, the metric stands at 80.49%, marking its year-to-date high.

The Holder Retention Rate tracks the percentage of addresses that maintain a balance of BTC across consecutive 30-day periods. Simply, it reflects how many investors continue to hold onto their coins month after month. 

BTC’s climbing Holder Retention Rate is notable because it traded in a sideways pattern for most of August, struggling to gain momentum. Such lackluster price action usually prompts traders to exit positions. 

Instead, the steady rally in BTC’s  Holder Retention Rate shows that most investors opted to ride out the consolidation phase, confirming their long-term outlook on the asset.

: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily crypto Newsletter here.

Bitcoin ELR Hits Yearly High, Traders Signal Stronger Conviction

Bullish sentiment among its derivatives traders has also strengthened, highlighted by the coin’s surging estimated leverage ratio across all exchanges. At press time, this is 0.26, also sitting at its highest level since the year began.  

The ELR measures the average leverage traders apply to BTC positions on exchanges. It is calculated by dividing open interest by the exchange’s reserve for that asset.

A declining ELR suggests traders are reducing exposure, signaling caution over the asset’s near-term prospects and avoiding high-risk positions.

Conversely, a rising ELR shows that traders are increasing leverage, pointing to stronger conviction and greater risk appetite.

Therefore, the uptick in BTC’s ELR indicates growing confidence in the market, with Leveraged traders positioning for further gains.

Bitcoin Rally Hinges on Conviction — $119,000 in Sight, $122,000 Next

If retention remains high and derivatives traders maintain their bullish conviction, BTC’s current rally could strengthen and push toward $119,367. A breach of this barrier could propel the leading coin to $122,190.

On the other hand, a decline in bullish conviction could trigger a revisit of the $111,961 low.