Bitcoin has experienced a flurry of volatility over the weekend, hitting the psychological $100K mark and hitting a new all-time high of $103,600. Despite this milestone, the price continues to struggle to hold above $100K, raising questions about the strength of the current rally.
Metrics from CryptoQuant reveal a significant trend among long-term holders (LTH), who are actively profiting. The average purchase price for these holders is $23.4K, realizing an impressive 326% return on their investments. While this behavior reflects confidence in locking in profits at higher levels, it can also signal caution, as such selling has historically slowed momentum during bull runs.
This wave of selling could raise concerns among investors expecting uninterrupted upward momentum. Some fear that this could create resistance that would hinder Bitcoin’s ability to sustain its climb past the $100K threshold. At the same time, it highlights the calculated strategies of experienced market participants, balancing optimism with prudence.
The coming days will be important As BTC navigates this critical juncture. Whether BTC reclaims its footing above $100K or succumbs to the pressure will shape broader market sentiment and determine the next phase of its historic bull cycle.
Demand remains strong
Bitcoin is exhibiting impressive demand, with the price experiencing only a 10% retracement in the past month after breaking through the crucial $100,000 level. This shows that the momentum driving Bitcoin’s rise remains strong, and it’s only a matter of time before the cryptocurrency moves to new highs.
Analyst Axel Adler recently shared metrics which support the ongoing bullish trend. A key observation is that long term holders (LTH) are actively selling coins realizing substantial profits. The average purchase price of these holders is $23.4K, and with current prices, they are sitting on an impressive 326% gain. As these LTHs sell their holdings, new investors are coming in to absorb the supply, keeping demand high.
This dynamic highlights an important point: supply from LTHs is likely to increase steadily as their profits increase. With such a significant percentage of profit being achieved, more LTHs will continue to be sold, which will fuel further market activity. However, this does not indicate a bearish trend, as new investors are rapidly absorbing the supply, and the overall demand for BTC is inexorable.
Given these factors, the BTC bull run is just beginning. As LTHs continue to sell off and more fresh capital enters the market, the stage is set for Bitcoin to move past current levels and potentially set new all-time highs. Ongoing demand, coupled with profit-seeking behavior from long-term holders, suggests the market is entering a period of sustained growth.
Bitcoin struggles above $100k
Bitcoin is currently trading at $98,500 after failing to break and hold above the $100,000 level three times in less than a week. The repeated struggle for the price to sustain above this key psychological level has raised concerns as BTC experiences increased volatility.
Given the large rise above the $60,000 range, this can be attributed to whales taking profits after significant gains. However, if demand continues to grow and more buyers enter the market, Bitcoin could eventually establish a firm foothold above $100,000.
Market reaction to this important level is a clear indication of ongoing market dynamics. If buying pressure remains strong, BTC could see a sustained push above $100K, with a possible consolidation phase above this mark. This would indicate that Bitcoin’s upward 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 see if the $100,000 resistance turns into a support level, paving the way for further gains. Ultimately, continued demand from both retail and institutional investors could fuel Bitcoin’s next phase, confirming its long-term bullish momentum.
Featured images from Dall-E, charts from TradingView
