After the events of last week, it is a matter of “when” rather than “if” Bitcoin will reach a historic six-figure value. Cryptocurrency commentary channels and waves have been largely occupied with the flagship cryptocurrency potentially hitting $100,000 over the past few weeks.
Not only is BTC’s six-figure value an impressive milestone for the entire cryptocurrency industry, but it’s also one that comes with “unfavorable” events like liquidations for short traders. Here’s an on-chain insight into “what happens next” if Bitcoin’s price rises above $100,000.
What’s next for BTC price after $100,000?
In a recent report, blockchain analytics firm Glassnode released subscriber An insight into the on-chain performance of the leading cryptocurrency since the start of its recent rally. While the $100,000 price tag seems inevitable, the blockchain company expects the Bitcoin price to lose some of its momentum after surpassing the target.
One rationale behind this prediction lies in the recent behavior of a group of investors known as Long-Term Holders (LTH). According to Glassnode, long-term holders have begun unloading their assets for profits and may be waiting to sell more coins as the price action continues to grow strong.
Source: Glassnode/X
Based on data from the LTH Spending Binary Indicator, which tracks the intensity of sell-side pressure for long-term holders, these major investors have increasingly spread their assets. This binary spending metric shows that LTH balance has declined on 11 of the last 15 days.
While demand from institutional investors, specifically via US exchange-traded funds (ETFs), has absorbed 90% of the sell-side pressure from longer-term investors, Glassnode noted that spending pressure for this group of investors has begun to outpace net inflows. For ETFs in recent days. This pattern was also observed earlier in February 2024.
According to Glassnode, if sell-side pressure continues to outpace demand for ETFs, this could lead to short-term price volatility or lead to price consolidation. The company on the chain said:
However, since November 13, LTH selling pressure has begun to exceed net ETF inflows, reversing the pattern observed in late February 2024, as an imbalance between supply and demand led to increased market volatility and consolidation.
$1.89 billion will be liquidated if Bitcoin price exceeds this level
In a November 22 post on X, prominent cryptocurrency analyst Ali Martinez It seemed Warning for Bitcoin bears. According to data from CoinGlass, a whopping $1.89 billion appears to be ready to be liquidated if the price of Bitcoin reaches $100,625.
Source: Ali_charts/X
As of this writing, the leading cryptocurrency is valued at $99,424, reflecting a 1.4% price increase in the past day. Data from CoinGecko shows that Bitcoin’s price has been even more impressive on the weekly time frame, rising nearly 10% in the past seven days.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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