Bitcoin Pulls Back from $124K, But Bullish Metrics Hint at Another Rally

Bitcoin (BTC) surged to a new all-time high of $124,457 on August 13, 2025, before retracing to the $117K–$120K range following a wave of leveraged liquidations and cautious investor sentiment. Despite the dip, on-chain data and derivatives activity reveal underlying bullish strength that could set the stage for another upward move.

The pullback came amid remarks from U.S. Treasury Secretary Scott Bessent, who reiterated that the government has “no plans” to make further Bitcoin purchases for its strategic reserves. While his comments initially rattled the market, he later clarified that budget-neutral options to acquire more BTC remain under consideration.

Market sentiment also took a hit as over $1 billion in leveraged positions were liquidated, with selling pressure pushing BTC below $119K before stabilizing around $120K.

On-Chain Data Shows Holder Conviction

Despite the correction, exchange netflow metrics have reached levels historically seen ahead of major rallies, similar to patterns in 2017 and 2021. Reduced Bitcoin selling pressure from long-term holders has tightened supply, a factor often linked to upward momentum.

Short-term holders (STHs), typically quick to sell during volatility, have shown surprising resilience. The STH Spent Output Profit Ratio (SOPR) rebounded above one, indicating profitable sales and healthy sentiment. This suggests that STHs are holding through price swings, helping stabilize the market.

The NVT Golden Cross, a valuation metric comparing Bitcoin’s market cap to transaction activity, has dropped sharply to 0.2709. Historically, such declines have preceded strong bullish reversals.

Derivatives Market Supports a Bitcoin Bullish Outlook

The derivatives market has echoed the optimism. Over the past 24 hours, BTC recorded $24.28 million in short liquidations, outpacing long liquidations. Futures trading volumes surged 65% to $149.47 billion, while options volume soared 128% to $9.43 billion.

The taker buy/sell ratio hit a monthly high of 1.16, signaling aggressive buying in futures markets. Positive funding rates suggest leveraged traders remain confident in sustaining long positions without excessive risk of forced sell-offs.

Analysts are eyeing a potential retest of the $122,000 level, with a break above $122,190 possibly paving the way back to the $124K peak. However, if selling pressure intensifies, BTC could test support around $115,892.

With on-chain metrics, derivatives data, and holder behavior aligning, the broader outlook remains tilted toward another rally, potentially pushing Bitcoin to new record highs in the weeks ahead.