Bitcoin has crossed a significant milestone, breaking through $120,000 for the first time since August. This surge is driven by easing pressure from long-term holders (LTHs), coupled with strong activity in derivatives markets. Key insights include: 1) Long-term selling has cooled off, suggesting a shift towards accumulation, and 2) Short-term holder behavior shows signs of stabilizing after recent losses. 3) Record open interest in futures contracts points to potential for a short squeeze if the rally continues. 4) Uncertainty surrounding the US government shutdown and the lack of ETF reviews are prompting traders to look at derivatives as primary catalysts for direction.