Bitcoin is on the verge of a historic breakout, consolidating below the highly anticipated $100,000 level. After rising more than 8% since the beginning of the year, the leading cryptocurrency has captured the attention of investors and analysts alike. While the market remains cautiously optimistic, all eyes are on Bitcoin to confirm its next big move.
Senior analyst Axel Adler recently shared insightful data about X, revealing that 90% of the total Bitcoin supply is currently generating profits. This key metric highlights the strength of BTC’s recent rally and confirms widespread optimism in the market. Adler notes that these high levels of profitability typically correspond with bullish market conditions, raising expectations of a breakout above $100,000.
The psychological and artistic importance of the $100,000 mark cannot be overstated. A decisive move above this level could signal the beginning of a new phase in BTC’s bull cycle, calling for fresh capital and sparking renewed enthusiasm across the cryptocurrency space. However, with prices consolidating, investors are cautiously awaiting confirmation.
Bitcoin’s bull cycle looks strong
Despite the uncertainty and negative sentiment surrounding Bitcoin’s failure to cross the $100,000 level, the current market cycle remains strong and bullish. BTC continues to hold key demand levels, reinforcing its bullish structure. Sideways consolidations, often misunderstood as stagnation, are crucial to creating broad-based moves, allowing the market to build momentum.
Chief Analyst Axel Adler Share insightful data on Xwhich highlights the flexibility of the market. Currently, 90% of the total supply of Bitcoin is generating profits, which is a strong indicator of the health of the market. According to Adler, if the current cycle avoids “black swan” events—unexpected and disruptive events—the market could follow a path similar to the 2017 bull cycle. During that period (marked by “blue box #1”), Bitcoin showed an uptrend with limited… Minimum of drawdowns, maintaining a metric level of 80%.
Adler also reflected on the 2021 cycle (blue box #2), noting that it could have followed the same upward trajectory were it not for the disruptive effects of China’s mining ban. This event temporarily derailed the upward trend, underscoring how external shocks affect market dynamics.
As Bitcoin consolidates below $100,000, its current pattern reflects a healthy cycle that is poised for further growth. Investors are closely watching for a break above this psychological barrier, which could signal the start of the next bullish phase. With strong fundamentals and minimal disruption, Bitcoin’s trajectory looks increasingly promising.
Technical analysis: key liquidity levels
Bitcoin is trading at $99,100 after a strong bounce from the 4-hour moving average at $98,299. The price also found support at the 4-hour EMA, a key technical indicator that indicates strength in the short term. This rebound has left investors optimistic about the possibility of the upward trend continuing in the coming days.
If BTC can decisively break above the critical level of $100,000, it will pave the way for a massive rally into uncharted territory. A confirmed breakout at this psychological and technical level will likely attract significant buying pressure, boosting Bitcoin’s bullish momentum.
However, there are still risks. If BTC fails to reclaim $100k in the near term, the market may enter a prolonged consolidation phase, testing investors’ patience and allowing liquidity to accumulate. Failure to maintain the current bullish structure may also lead to a deeper correction, perhaps revisiting lower support levels.
Featured image by Dall-E, chart from TradingView
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