Bitcoin Consolidation: Market Calm After All-Time High Surge

Bitcoin (BTC) entered a “healthy yet fragile balance” after reaching its all-time high (ATH), according to analytics firm Glassnode. Profitability indicators have cooled, but new gains remain possible as the cryptocurrency consolidates amid potential extended range-bound conditions.

Market Dynamics Shift After Bitcoin ATH

Glassnode’s latest Market Pulse indicates investors are recalibrating after the recent price surge, with profitability metrics showing slight declines while remaining in “euphoric territory.”

The Realized Profit-to-Loss Ratio dropped from 3.9 to 2.6, signaling a cooldown despite realized profits still outweighing losses. This shift points to investors adopting a more measured stance amid reduced bullish momentum.

“This reading hovers just above the high band of 2.7, indicating that realized profits still outweigh losses, though momentum has cooled,” Glassnode wrote in its analysis.

Current Consolidation May Signal Reduced Market Volatility

The current consolidation phase could extend longer than previous corrections, Glassnode warned. The market appears to be coiling rather than continuing its upward trajectory from $123,000.

“Seller exhaustion appears likely and ready for another potential leg up, but if profitability continues to weaken, the market may transition into a broader consolidation phase,” the analysis concluded.

Liquidity Points to $115,000 as Support Level

Market participants are monitoring $115,000-$120,000 as key levels amid the bull run pause. The area represents an increasingly significant liquidity cluster that could influence upcoming price movements.

“The longer price keeps hovering around this area, the more positions will be building up on both sides. Those positions will be fuel for wherever this moves next,” trader Daan Crypto Trades commented.

— @DaanCrypto / July 22, 2025

This price zone aligns with previous observations of $118,000 as a significant low-timeframe level due to trading volume. Bitcoin’s price has demonstrated sensitivity to liquidity clusters during its recent run.