Since surpassing it last week, bitcoin is struggling to reach the $100,000 milestone, struggling to stay above this critical level. Even though the price faces resistance, bitcoin continues to show strength, indicating potential for further bullish momentum in the near term. Investors and analysts are watching closely as the market looks for confirmation of its next move.
CryptoQuant data highlights an intriguing trend: new investors are coming in hard. The realized capitalization of coins held by newcomers (those holding them for up to a month) has surpassed $343 billion, marking a staggering 909% increase since the start of this bull cycle. This rise underlines the growing appetite for bitcoin among new market entrants, even as long-term holders make significant gains.
This dynamic suggests a healthy market rotation. New investors absorb the coins sold by long-term holders, providing a foundation for continued demand. This behavior is typical during the later phases of a bull run, when retail and institutional interest peaks, fueling the final phases of a rally.
As bitcoin consolidates below its all-time high, attention remains focused on whether it can establish itself above $100,000. The next few days will be crucial in determining whether the bullish cycle continues or if a correction is on the horizon.
bitcoin Consolidation Continues Below $100,000
bitcoin has been in a consolidation phase below the $100,000 level since November 22. Despite surpassing this key psychological threshold, the price has struggled to maintain momentum and continue rising. This price action is likely attributed to long-term holders taking profits at these elevated levels, creating resistance. As these investors make significant profits, there is room for price fluctuations as new buyers enter the market.
However, despite the lull in price action, there are signs that demand for bitcoin remains strong. Axel Adler, CryptoQuant analyst <a target="_blank" href="https://x.com/AxelAdlerJr/status/1866386717663506676″ target=”_blank” rel=”noopener nofollow”>recently shared data about revealing that the realized capitalization of coins held by new investors (those who hold them for up to a month) has exceeded $343 billion, reflecting a staggering 909% increase since the start of this bull cycle. This increase indicates a significant shift in the market, where long-term holders are selling, but new players, including corporations and potentially governments, are absorbing the supply.
This influx of new capital suggests that large institutional players are driving demand, with businesses and government entities likely to lead the charge. The growing interest from these institutional buyers could be a critical factor in maintaining the current upward trend in bitcoin price. As long as new players continue to absorb the supply, the potential for bitcoin to rise will remain intact, even if short-term price fluctuations persist.
Price tests liquidity to rise
bitcoin is trading at $97,700 after failing to close above the $100,000 level five out of six times since initially surpassing it. Despite this struggle, the price looks set to rally and confirm a bullish breakout, which could take bitcoin into uncharted territory. This resistance at $100,000 has created uncertainty, but the market still appears strong, and a successful daily close above this level would likely signal the next leg of the bull run.
However, there is a risk of a correction if bitcoin fails to stay above the $100,000 mark in the coming days. If this level becomes a solid barrier again, btc could experience a pullback and test lower levels, which could lead to a consolidation or deeper pullback.
Price action in the coming days will be crucial in determining whether bitcoin can maintain its bullish momentum or if the market will take a more cautious stance. Investors will need to watch for signs of support around key levels to gauge the strength of the current rally.
Featured image of Dall-E, TradingView chart
