Bitcoin has struggled to secure $100,000 as a support level over the past six weeks despite repeated attempts. However, recent market trends suggest that this could soon change.
A notable dip in selling activity, combined with shifting investor sentiment, provides a promising setup for the cryptocurrency’s price action.
Bitcoin Investors Are Getting Tired Of Selling
Bitcoin’s short-term on-chain cost basis reveals a significant shift in market conditions. Currently, Bitcoin is trading approximately 7% above the short-term holder (STH) cost basis of $88,135. This price premium indicates growing confidence among new investors. However, a failure to stabilize above this level could signify waning sentiment, which often precedes broader market corrections.
The ability of Bitcoin to maintain its current levels above the STH cost basis is critical. If prices dip below this threshold, it may signal hesitation among short-term holders. Conversely, holding above this level could bolster confidence, reinforcing bullish sentiment in the market.
Bitcoin Short-Term On-Chain Cost Basis. Source: Glassnode
Macro momentum indicators further underscore Bitcoin’s potential for recovery. Realized profits have dropped to a three-month low, signaling a decline in selling pressure. This reduced activity indicates that investors are choosing to hold rather than exit, suggesting diminishing bearish sentiment.
The drop in realized profits provides Bitcoin with an opportunity to regain momentum. With fewer sellers in the market, buying pressure could take precedence, paving the way for sustained recovery. Such a shift would give Bitcoin the breathing room it needs to target key resistance levels.
Bitcoin Realized Profits. Source: Santiment
BTC Price Prediction: Boosting Through The Barrier
Bitcoin is currently trading at $94,422, just below the $95,668 resistance level. This barrier is the final hurdle before the cryptocurrency can aim for the $100,000 mark. A breach of this resistance could spark renewed bullish momentum, bringing BTC closer to achieving this psychological milestone.
The prevailing factors support a strong bullish case for Bitcoin. A breakout above $95,668 would clear the path for sustained upward movement. If momentum holds, BTC could surpass $100,000, setting a new benchmark for its price trajectory.
Bitcoin Price Analysis. Source: TradingView
However, failure to breach $95,668 could lead to a pullback. Bitcoin may test the support at $93,625, and if it loses this level, the price could drop further to $92,005. Such a decline would invalidate the bullish outlook and delay recovery efforts, leaving the market in a state of uncertainty.
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