Key Takeaways
Bitcoin’s 12.8% drawdown aligns with healthy consolidation, not a deep correction. Besides, NVT drop, Coinbase Premium surge, and short liquidations all point to resilience.
At the time of writing, Bitcoin [BTC] was 12.8% down from its all-time high, but this pullback remained within the typical –10% to –18% range often seen during bull markets.
Declines in this zone tend to resemble consolidation rather than capitulation, whereas deeper corrections can extend toward –30%.
With prices hovering near $110K, the movement appeared more like a healthy correction than a breakdown.
This positioning often signals a repair phase, one that could set the stage for another push higher, unless external shocks drag prices lower.
Can Bitcoin’s ascending channel deliver $150K?
The daily chart revealed Bitcoin holding the lower boundary of its ascending channel after bouncing from the $107K area.
From here, the path back toward $123K looked open, with Fibonacci levels pointing to $150K as an extended upside target.
Furthermore, RSI at 42.8 indicated weak but improving momentum, at press time, leaving room for bullish acceleration if buyers sustained pressure.
However, failure to maintain channel support could expose downside risks toward $93K. Therefore, this structure keeps the bullish case alive while warning against complacency.
Source: TradingView
Does the NVT Ratio strengthen Bitcoin’s valuation case?
On-chain metrics highlighted a notable 17.35% drop in the Network Value to Transaction (NVT) ratio, positioned at 32.6 at press time.
That level suggests Bitcoin’s market cap is lining up more neatly with transaction activity, easing concerns of overvaluation.
Historically, falling NVT readings have gone hand-in-hand with healthier market phases, as network throughput supports higher valuations.
It’s a constructive sign, but if transaction volumes weaken, this signal could quickly lose weight.
Is Coinbase Premium Gap flashing U.S. demand?
The Coinbase Premium Gap surged 128% to reach 2.56, as of writing, highlighting robust buying interest on U.S. exchanges.
In simple terms, American traders are paying a premium compared to global peers, and that is often a telltale sign of institutional accumulation.
Premium spikes have often accompanied sustained rallies, as U.S. demand historically leads Bitcoin’s directional moves.
Of course, if that premium flips lower, it could also warn of fading appetite.
Are short liquidations shaping Bitcoin’s near-term path?
Liquidation data revealed a decisive imbalance, with $13.37 million in short positions wiped compared to just $379K in longs.
Most losses came from Bybit, Binance, and Hyperliquid, showing that bearish traders miscalculated Bitcoin’s $110K rebound.
When shorts face rapid liquidation, price often accelerates higher as forced buying fuels rallies. Therefore, the present data points to potential upside continuation in the short term.
However, any sharp rejection could flip the imbalance against overleveraged longs, sparking heightened volatility across derivatives markets.
Is Bitcoin preparing for its next leg higher?
Put it all together: the 12.8% drawdown, the steady channel structure, NVT stability, U.S. premium strength and short liquidations – The case leans toward resilience, not breakdown.
While risks remain if channel support breaks, the data leans toward resilience rather than weakness, keeping $123K to $150K targets firmly in play.
