Bitcoin is currently going through a consolidation phase while still far from a bottom. As per the data from Glassnode, the prominent short-term holder trends indicate Bitcoin ($BTC) has not yet entered a local bottom. As the popular on-chain analytics platform revealed in its recent social media posts on X, Bitcoin is now in a post-ATH contraction phase. Thus, the flagship crypto asset is still going through bottom formation.

The Anatomy of a Local Bottom

1- When the market enters a post-ATH contraction phase, short-term price action is often shaped by how top-buyers react to growing unrealized losses.

Right now, a dense cluster of supply, accumulated between $113k and $120k since early July,… pic.twitter.com/qn7CMnBJcH

— glassnode (@glassnode) August 21, 2025

Bitcoin Accumulation Cluster Emerges within the $113K-$120K Range Amid Post-ATH Contraction

In line with the exclusive market data, Bitcoin ($BTC) is reportedly moving toward the bottom amid the post-ATH contraction. The on-chain analytics firm is of the view that the post-ATH contraction events are often formed by the response given by the short-term investors to the rising unrealized losses. Hence, a comprehensive supply cluster has been accumulated within the $113,000-$120,000 range since the start of July. The key investors responsible for holdings include those investors who have been holding Bitcoin ($BTC) for less than three months.

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Apart from that, the respective group’s behavior plays a crucial role in determining the market’s potential movement toward a local bottom. As the cost basis distribution heatmap suggests, the concentration of supply within the above-mentioned range highlights that several recent buyers became a part of the market during the respective price window. Therefore, the $113K-$120K zone delivers a critical resistance area if the prices plunge further. Keeping this in view, when the top crypto asset returns to such territories, the holder reaction often determines price direction in the near term.

SOPR Level within 0.9-1.01 Zone Suggests Bitcoin Far From Bottom Formation

                                                                                  Bitcoin SOPR by Glassnode

According to Glassnode, Bitcoin’s Spent Output Profit Ratio (SOPR) offers further clarity to the ongoing speculation of local bottom in the current cycle. In this respect, the SOPR within the 3-month range is now moving around 0.96-1.01, underscoring a mild loss-taking while still away from deep capitulation. If the SOPR reading is below the 0.9 mark, it often parallels the conclusive selling waves, paving the way for a price bottom. However, at the moment, the top cryptocurrency has yet to reach its bottom.