Bitcoin Approaches Key Profitability Levels, Indicating Potential Distribution Pressure Amid Bullish Momentum

• Bitcoin approaches a critical psychological barrier as long-term holders near peak profitability, hinting at possible market shifts.

• This scenario unfolds as Bitcoin (BTC) exhibits sustained bullish momentum, climbing towards a formidable $100K target.

• “As BTC nears this pivotal zone, we may witness intensified selling pressure from seasoned investors,” a COINOTAG analyst noted.

Bitcoin approaches a crucial price level as long-term holders reach near 350% profitability, signaling potential market shifts ahead.

Will Bitcoin’s ascending channel break out above $98K?

Bitcoin’s price trajectory continues to respect its ascending channel based on the 4-hour chart, reflecting ongoing upward momentum. As BTC recently reclaimed the $96.3K support level, market participants are watching closely for any shifts.

With the $98K mark emerging as a key resistance level, traders face potential challenges. However, this pattern also indicates a capacity for rebounds and higher highs, suggesting a possible breakout toward the $100K milestone.

Thus, the short-term structure remains favorable for buyers, contingent on BTC maintaining its support and aligning with the projected upward trajectory.

Source: TradingView

Are stronger hands accumulating while retail steps back?

Recent metrics from IntoTheBlock reveal a significant shift in market participation dynamics. Retail activity has dipped slightly by 0.09%, contrasting with a 1.4% increase in investor holdings, indicating a trend towards accumulation among medium-term holders.

The Whale Concentration has remained steady, suggesting a phase of consolidation in the market. This redistribution of BTC from smaller holders to more steadfast investors could fortify long-term price stability.

Source: IntoTheBlock

Why does Derivatives data show hesitation?

The derivatives market for BTC has displayed signs of cooling, revealing a trend of cautious positioning among leveraged participants. It has been noted that Futures Volume has decreased by 31.03%, while Options Volume has seen a reduction of 25.82%, alongside a 2.61% drop in Open Interest.

Furthermore, a decline of 6.31% in Options Open Interest highlights dwindling expectations for aggressive movements. This cooling indicates traders are waiting for clearer breakout signals above $98K before reallocating capital, which may suppress short-term volatility.

Source: CoinGlass

Are on-chain and exchange metrics supporting a bullish bias?

Several key indicators signal a favorable environment for Bitcoin’s market activity. Large Transactions (+0.63%), Address Concentration (+0.89%), and In-The-Money Wallets (+0.76%) suggest underlying strength among market participants.

Additionally, exchange metrics such as Bid-Ask Volume Imbalance (+1.37%) and Smart Price Signals (+0.02%) collectively provide a bullish outlook. Even though Net Network Growth remains stable, the comprehensive data suggests a lean towards buyer dominance.

Source: IntoTheBlock

Can bulls conquer the $100K barrier?

As long-term holders near a profitability threshold of 350%, potential distribution may loom. However, positive technical setups, consistent accumulation by investors, and supportive overall metrics lean towards bullish continuity.

If Bitcoin maintains the current support level at $96.3K and successfully reclaims the $98K resistance, the price may steadily progress toward the coveted $100K mark. The market’s structure favors a gradual bullish ascent, akin to the upward trajectory illustrated in the preceding charts.