Bitcoin continues to hold steady above $120,000, defying recent market volatility amidst a period of cautious trading. While short-term consolidation prevails, analysts are optimistic about Bitcoin’s potential for growth over the coming months, citing on-chain metrics and favorable market dynamics as key drivers. 8% reduction in leveraged trading positions across futures markets suggests a shift toward a more conservative approach by traders, with the level around $120,000 serving as a prominent buying zone supported by an increase in spot demand. This is evidenced by a surge in volume activity on Binance, suggesting renewed buyer interest. On-chain data reveals near-even distribution between profit and loss realizations among short-term holders, indicating market stability and cautious optimism, while the MVRV ratio indicates potential upside of 15% to 25%, potentially reaching $140,000 to $150,000 by year-end. Bitcoin’s recent range-bound movement reflects a strategic deleveraging process across futures markets, signaling traders are adapting cautiously to the current phase of market stability and cautious optimism. While the near-even distribution among short-term holders suggests caution, Binance’s data highlights a recent surge in spot buying interest. Open interest in perpetual futures contracts has also declined, suggesting the closure of short positions amid price rebound, potentially paving the way for sustained growth. 8% reduction in leverage positions across futures markets reflects cautious trading behavior and increased market stability. The current sideways trend is not anticipated to last long. Market analysts anticipate a strong upside potential as we enter Q4. A bullish MVRV ratio, indicating whether Bitcoin is overvalued or undervalued relative to holder costs, currently suggests a possible 15% to 25% appreciation, potentially reaching $140,000 to $150,000. This positive outlook could be further bolstered by the upcoming post-halving supply squeeze. This article originally appeared on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.