Bitcoin's BTC/USD sharp rise to an all-time high of $111,800 has entered a decisive phase, as data from Glassnode reveals intensified profit-taking by long-term holders.

What Happened: The surge, initially driven by aggressive spot buying, is now encountering persistent sell pressure from earlier market participants, posing a critical test of the market's resilience.

Glassnode's on-chain analysis released on Thursday shows that key support levels at $103,700 and $95,600 will likely determine whether bullish momentum can be sustained.

"With key support at $103.7k and $95.6k, and signs of older investors offloading, the bulls now face a critical test of their resolve," the report states.

While the current cycle has delivered multiple high-profit waves, the latest realized profits peaked at $1.47 billion per day, marking the fifth major sell event of this rally.

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Notably, the majority of this selling is being led by investors holding Bitcoin for over a year, indicating that this is not driven by speculative short-term traders but by conviction-led capital rotation.

Historical accumulation zones, previously demand-heavy, have flipped into active distribution zones, particularly among holders who bought in the $25K–$31K and $60K–$73K ranges.

Why It Matters: The shift signals a deeper market rotation, where seasoned holders are choosing to de-risk rather than bet on further upside.

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Cost basis and statistical models further highlight $103,700 and $95,600 as critical supports.

A breakdown below these levels, particularly without a strong demand-side catalyst, could indicate broader trend exhaustion.

Meanwhile, the resistance ceiling remains at $114,800.

Short-term holder behavior also plays a role. The average cost basis for recent buyers sits at $97,100. If Bitcoin trades below this threshold for an extended period, it could challenge bullish sentiment among newer participants.

Glassnode also notes that the profit-taking behavior has become more measured compared to prior bull cycles. While still intense, this regime suggests maturing investor psychology and decreasing speculative excess.

The current cycle shows lower realized profit as a percentage of market cap compared to previous tops, reinforcing the idea of more structured capital flows.

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