Bitcoin (BTC) has recently broken through the $112,000 resistance level that had constrained its growth for several weeks, now trading at $115,104.
On-chain analytics reveal two significant trends: an increasing holder retention rate and a rise in the estimated leverage ratio. Both indicators reflect a robust holding sentiment among investors. These signs imply that long-term confidence remains strong, and if the buying momentum continues, BTC may soon aim to reclaim the $120,000 mark.
Record High for Bitcoin Holder Conviction in 2025
Data from Glassnode indicates that Bitcoin (BTC) holders are showing unwavering conviction as evidenced by a steady increase in the coin’s Holder Retention Rate since August 6. Currently, this metric is at 80.49%, representing its highest point of the year so far.
The Holder Retention Rate measures what percentage of addresses maintain their BTC balance over consecutive 30-day periods. In simpler terms, it shows how many investors continue to hold onto their coins month after month.
The rising Holder Retention Rate is particularly noteworthy given that BTC traded sideways for most of August without gaining much traction. Typically, such stagnant price movements would lead traders to exit their positions.
However, instead of selling off during this consolidation phase, many investors chose to stay put with their holdings—reinforcing their long-term outlook on Bitcoin as an asset.
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Yearly High for Bitcoin ELR Indicates Stronger Trader Confidence
Bullish sentiment among derivatives traders has also intensified as reflected by a notable increase in the estimated leverage ratio across all exchanges. At present time, this figure stands at 0.26—its highest level since January of this year.
The estimated leverage ratio (ELR) assesses how much leverage traders are applying to BTC positions on exchanges by dividing open interest by each exchange’s reserves for that asset.
A decreasing ELR typically suggests that traders are pulling back exposure due to caution regarding short-term prospects and avoiding high-risk trades.
<pConversely; an increasing ELR indicates heightened trader confidence and greater risk tolerance as they ramp up leverage usage.
This uptick in BTC’s ELR signifies growing optimism within the market; leveraged traders appear poised for additional gains.
The Future Rally of Bitcoin Depends on Conviction — Targeting $119K Then $122K
If retention rates remain elevated while derivatives traders uphold their bullish stance; BTC could see its current rally strengthen further towards reaching approximately $119,367. A breakthrough beyond this threshold could send prices soaring towards around $122,190.
Conversely ; should there be any decline regarding bullish conviction ; we might witness another dip down towards previous lows around approximately $111,961 .
This article titled “Bitcoin Breaks Through Resistance Level Of $112K With Eyes Set On Reaching The Next Milestone Of$120K” was originally published on BeInCrypto.