Bitcoin is nearing the $100,000 mark, facing resistance as many long-term holders consider selling. With key metrics suggesting a potential price dip before breaking through, analysts are cautiously optimistic. Investor confidence remains strong, despite volatility.
Summary Recent analysis indicates that Bitcoin might be edging closer to breaking the formidable $100,000 mark. While some long-term holders are considering cashing out, a potential rally could still be on the horizon if certain resistance levels are surpassed. As Bitcoin’s price trends remain stabilised, the market is watching closely for any indicators of breakout or retreat.
On Friday, stable market conditions led on-chain analytics platform Glassnode to pinpoint a crucial resistance zone for Bitcoin. They noted that many long-term BTC holders might be preparing to exit their positions. As Bitcoin inches closer to its next breakout level, a tug-of-war appears imminent between bullish momentum and sell-side pressure from those looking to take profits.
As Bitcoin approaches the $100,000 milestone, a major resistance zone could act as a barrier in the near term. CoinGlass’ data reveals that a hefty volume of BTC was purchased within the price range of $95,000 to $98,000. This suggests that a significant portion of holders might want to cash out while they’re still at breakeven, potentially leading to a short-term price dip before any further upward momentum.
Typically, long-term holders bolster bullish trends, and their selling activities can significantly sway Bitcoin’s price. Uncertainties loom regarding when these selling pressures will emerge, yet Bitcoin is showing signs of stabilising, indicating a possible price retreat ahead. According to one analyst, if the unrealised profits for long-term holders reach around 350%, this could coincide with Bitcoin trading at approximately $99,900.
Should Bitcoin clear this threshold successfully, it could pave the way for a breakout, allowing it to explore new price levels above the $100,000 mark. While recent movements have shown resilience, Bitcoin maintained stability during the latter hours of May 2nd after experiencing a peak of $97,811. Currently, it’s trading around $97,050, per CoinMarketCap’s latest figures.
Amid these positive signals, confidence remains high among investors. New data suggests that over 254,000 BTC have not been moved for more than 155 days, indicating that many long-term holders purchased at prices above $95,000 but continue to hold firm through market fluctuations. The resilience in their strategy might play a pivotal role in Bitcoin’s next moves in the ever volatile crypto landscape.
