Bitcoin Pullback Signals Opportunity: Why BTC May Have Room to Climb Before Profit-Taking

Bitcoin (BTC) has pulled back slightly from last week’s record highs, with prices now hovering just above $115,000. While some traders fear this could signal the start of a broader correction, on-chain data suggests otherwise.

Analysts argue the market remains far from overheated, pointing to indicators that show more room for upside before major selling pressure emerges.

Short-term holders (STHs), who tend to enter during rallies, are still sitting on relatively modest profits. This group’s cost basis, the average entry price for new wallets—suggests Bitcoin could climb significantly higher before hitting zones typically associated with aggressive profit-taking.

On-Chain Indicators Highlight Upside Potential

The STH Cost Basis Model highlights two critical levels to watch. The first is $127,000, historically a ceiling where profit-taking begins to intensify.

Beyond that, the +2σ band around $144,000 marks the so-called “euphoria zone,” where markets tend to overextend and risk sharp corrections. Until these levels are tested, analysts believe BTC has the runway for further gains.

Complementing this, the Net Unrealized Profit/Loss (NUPL) ratio underscores that sentiment is far from overheated. Currently, the NUPL for STHs sits at just 0.07, well below the saturation threshold of 0.25.

This suggests most short-term investors have yet to realize meaningful profits, leaving room for additional price appreciation before mass profit-taking becomes a concern.

Bitcoin’s Next Moves: Support and Resistance Levels

As of writing, Bitcoin trades around $115,448, holding firmly above its critical $115,000 support level. A successful reclaim of $117,261 could pave the way for BTC to retest $120,000, with $127,000 set as the next major resistance.

Beyond this, a potential push toward $144,000 would mark a new euphoric phase, although analysts caution that such levels also increase correction risks.

However, if Bitcoin loses its $115,000 support, it risks sliding to $112,526 or lower. This scenario would weaken the bullish thesis and force investors to reassess short-term expectations.

Despite macroeconomic pressures and geopolitical uncertainty weighing on broader sentiment, the current pullback appears to be more of a reset than a peak. With strong on-chain signals and institutional demand in play, Bitcoin may still have further room to run before facing serious headwinds.