Bitcoin has faced significant selling pressure above the $100K mark, with the market leader struggling to regain momentum. After a spectacular rally, BTC is now testing its ability to push past critical resistance, as traders and investors remain wary of its short-term trajectory.
Top analyst Axel Adler recently shared insights on X, highlighting key metrics that suggest the market is entering a cooling phase. According to Adler, the block P/L count ratio model – an indicator that tracks profits and losses within each block on the BTC network – shows a gradual decline in activity as profits are made. Investors maximizing profits at the $90K–$100K levels have contributed to this shift, signaling a potential slowdown after bullish momentum.
The current market environment shows a mix of optimism and hesitancy as BTC strengthens near its psychological resistance. While the broader sentiment remains cautiously bullish, the cooling of market dynamics may extend the consolidation phase.
As Bitcoin struggles to overcome this critical hurdleThe next few days will be crucial in determining its direction. Whether BTC manages to push above $100K or settles into a more expansive consolidation, its performance will likely set the tone for the broader crypto market.
Bitcoin is facing risks
Bitcoin’s struggle to regain the $100K mark has put the market leader at a crossroads. Although price shows resilience, every day spent below this critical level raises questions about the strength of the bullish structure. To confirm a sustained rally, BTC must break and hold above $100K, signaling renewed confidence in the market.
Axel Adler recently shared critical information on XThrowing light on current market dynamics. Adler’s analysis focuses on the block P/L count ratio model, a key metric that tracks profit and loss activity within each 10-minute Bitcoin block. The data shows that after investors locked in maximum profits at $90K–$100K, the metric fell sharply to 159 from levels above 100K. This sharp decline suggests a cooling market as trading activity slows and participants reassess their positions.
Adler notes that how long BTC will spend at these levels depends heavily on demand. If buying pressure persists, the market may struggle to maintain its current valuation, increasing the risk of a deeper correction. Conversely, an increase in demand could quickly push BTC above $100K, reviving the bullish trend.
The coming days will be important in determining the direction of Bitcoin. A decisive re-claim of $100K would reinforce its bullish outlook, while extended consolidation below this mark could test investor confidence. As traders monitor these developments, Bitcoin’s ability to navigate this pivotal phase will likely shape the trajectory of the broader crypto market.
Struggle below key moving averages
Bitcoin is currently trading below the critical 4-hourly 200 moving average of $98,208, a key level that should be reclaimed to confirm a bullish structure. This mark has become an important resistance point, and the price appears to be setting a lower high within the key liquidity range between $108K and $92K. This signals potential risks to further downside if momentum does not change soon.
The $98,208 level is critical to Bitcoin’s short-term trajectory. A failure to break this moving average could indicate that bearish pressure remains in effect, potentially pushing the price towards lower demand areas near $92K. Such a move would challenge the prevailing bullish narrative and test investor confidence.
For the bulls to gain control, BTC must decisively break above the $100K mark in the coming days. A successful move above this psychological and technical level will likely trigger a strong rally, attracting renewed buying interest and strengthening the bullish structure.
Featured images from Dall-E, charts from TradingView
