Bitcoin’s price trajectory continues to follow the Power Law theory, suggesting natural growth rather than speculative bubble behavior. The Power Law divergence indicator reveals Bitcoin trading above its long-term trendline while remaining well below the critical “top watch” zone, pointing to steady organic expansion with potential for additional upside in this mature market phase.
Recent on-chain data shows short-term holders contributed 85.5% of Bitcoin’s spent volume over the past 24 hours, totaling $18.24 billion. Long-term holders accounted for just 14.5% of activity at $3.10 billion, demonstrating that newer investors primarily drive current market volatility while established holders maintain their positions.
Technical Indicators Paint Mixed Picture
Bitcoin’s price recently traded around $113,545 following a pullback from highs near $118,000. The daily Relative Strength Index dropped to 42.91, showing weakening bullish momentum without reaching oversold territory. The On-Balance Volume trend has turned downward, indicating reduced buying pressure throughout the past week and suggesting cautious market sentiment during this cooling phase.
This combination of technical signals reflects a disciplined market approach rather than a fundamental breakdown. The mixed indicators align with Bitcoin’s transition into a more mature trading environment where investors exercise greater caution in their decision-making processes.
Market Maturity Becomes More Evident
The current price action and on-chain metrics highlight Bitcoin’s evolution into a more sophisticated market phase. The lack of bubble indicators combined with measured growth patterns and careful momentum shifts shows investors adopting more strategic approaches to their Bitcoin positions.
Bitcoin's recent breakout isn’t just fueled by traders on leverage.
Since July 9:
Spot volume is up +50.3%
Futures volume is up +31.9%That’s a key signal.
When both spot and futures rise together with spot leading it shows real buyers are entering, not just speculators.… pic.twitter.com/0XjSTPnMpK
— BitBull (@AkaBull_) July 15, 2025
Long-term holders’ resilience provides market stability even as short-term participants create volatility through active trading. This dynamic supports a solid foundation for Bitcoin’s continued development despite periodic fluctuations driven by newer market participants.
The Power Law alignment reinforces the sustainability of Bitcoin’s current growth trajectory. Rather than experiencing speculative spikes that characterize bubble conditions, Bitcoin demonstrates organic expansion that reflects genuine market development and increasing institutional acceptance.
Broader Market Sentiment Analysis
The current market environment presents neutral signals that could maintain steady trading conditions in the near term. These balanced technical and on-chain indicators suggest Bitcoin may continue its measured growth pattern without dramatic price swings.
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