bitcoin has experienced a whirlwind of volatility over the weekend, hitting the psychological mark of $100,000 and a new all-time high of $103,600. Despite this milestone, the price continues to struggle to maintain levels above $100,000, raising questions about the strength of the current rally.
CryptoQuant metrics reveal a significant trend among long-term holders (LTH), who are actively making profits. These holders have an average purchase price of $23.4 thousand, making an impressive 326% profit on their investments. While this behavior reflects confidence in setting profits at higher levels, it could also indicate caution, as these types of liquidations have historically slowed momentum during bull runs.
This wave of selling could raise concerns among investors hoping for uninterrupted bullish momentum. Some fear it could create resistance that hinders bitcoin's ability to maintain its rise past the $100,000 threshold. At the same time, it highlights the calculated strategies of experienced market participants, balancing optimism with caution.
The next few days will be pivotal as btc navigates this crucial juncture. Whether btc regains its position above $100,000 or succumbs to the pressure will shape overall market sentiment and determine the next phase of its historic bull cycle.
Demand remains strong
bitcoin has shown impressive demand, with the price only seeing a 10% pullback in the last month after breaking through the important $100,000 level. This shows that the momentum driving bitcoin's rise remains strong, and it is only a matter of time before the cryptocurrency continues its momentum towards new highs.
<a target="_blank" href="https://x.com/axeladlerjr/status/1866027965710004567?s” target=”_blank” rel=”noopener nofollow”>Analyst Axel Adler recently shared metrics that support the current upward trend. A key observation is that long-term holders (LTH) are actively selling coins and making substantial profits. These holders have an average purchase price of $23.4K and, at current prices, are making an impressive 326% gain. As these LTHs sell their stakes, new investors are stepping in to absorb the supply, keeping demand high.
This dynamic highlights a crucial point: the continued supply of LTHs is likely to increase as their profits increase. With such a significant percentage of profits made, more LTH will continue to sell, driving greater activity in the market. However, this does not indicate a bearish trend, as new investors are rapidly absorbing the supply and the overall demand for btc is unwavering.
Taking these factors into account, the btc bull run seems to be just beginning. As LTHs continue to sell off and more fresh capital enters the market, the stage is set for bitcoin to surpass current levels and potentially set new all-time highs. The current demand, coupled with profit-taking by long-term holders, suggests the market is entering a period of sustained growth.
bitcoin struggles to surpass $100,000
bitcoin is currently trading at $98,500 after failing to break above the $100,000 level three times in less than a week. The repeated struggle to keep the price above this key psychological level has raised concerns as btc experiences increased volatility.
This could be attributed to whales taking profits after significant profits, given the massive rise from the $60,000 range. However, if demand continues to advance and more buyers enter the market, bitcoin could finally establish a solid foothold above $100,000.
The market reaction to this crucial level is a clear indication of the ongoing market dynamics. If buying pressure remains strong, btc could see sustained momentum above $100,000, with a possible consolidation phase above this mark. This would indicate that bitcoin's bullish trend is far from over and that the market remains in a bullish cycle.
Traders and investors will closely monitor these price movements in the coming days to assess whether the $100,000 resistance becomes a support level, paving the way for future gains. Ultimately, continued demand from retail and institutional investors could fuel bitcoin's next rally, reaffirming its long-term bullish momentum.
Featured image of Dall-E, TradingView chart
