Bitcoin entered a consolidation phase just below the $100,000 level, after an impressive rally that saw the price reach all-time highs almost every day for about three weeks. While the market has calmed down recently, Bitcoin’s upward momentum remains strong, and many analysts believe the pause is only temporary before another upward push.
Senior analyst Axel Adler shared data revealing that this week saw record profits for Bitcoin, suggesting that investors are locking in profits while maintaining confidence in Bitcoin’s long-term potential. This is an important signal, because it indicates that even when BTC takes a break, demand for the asset remains high and healthy.
With the price stabilizing below the $100,000 level, many traders and analysts are waiting for the next major move. The coming weeks will be crucial to determine whether Bitcoin is able to break through this psychological barrier and continue its upward trajectory. As the market digests the recent gains, all eyes are on Bitcoin to see if it can maintain its bullish structure or if a deeper correction is on the horizon.
Demand for Bitcoin drives the price
Bitcoin has seen unprecedented demand over the past few weeks, with the price making a historic move from $67,000 to $99,000 in less than 20 days. This rally represents one of the fastest price developments in Bitcoin history, highlighting the power of market optimism and growing institutional interest. After this rapid rise, Bitcoin finally pulled back from its all-time high (ATH), but the decline was short-lived. The price quickly recovered and settled below the key level of $100,000, indicating that the bullish momentum remains.
Useful data shared by Axel Adler It reveals that BTC saw record profits generated this week, confirming the market’s strong health. Realized gains occur when long-term holders of a stock realize gains, indicating confidence in the future potential of the asset.
Additionally, Bitcoin price has almost returned to its November 22 peak, demonstrating the resilience of the current rally despite the brief correction.
The current demand for Bitcoin is absorbing all available sell-side supply, indicating that motivated buyers are outpacing sellers. This is a leading indicator of a very bullish market, as it shows that market participants are confident in Bitcoin’s long-term growth potential.
With strong fundamentals and continued buying pressure, Bitcoin appears poised for continued growth, with the $100,000 psychological level now acting as a pivotal support point. If BTC can maintain this consolidation, the next rally could push the price to all-time highs in the near future.
BTC holding is strong
Bitcoin is currently trading at $96,500 after hitting a new low at $90,700 and settling below the $100,000 mark. The price managed to rise above the $93,000 level but is struggling to break through the $97,000 resistance level, creating some uncertainty among investors who expected a faster move above $100,000. Despite this struggle, Bitcoin remains fundamentally strong, and price action continues to show resilience.
While a delay in crossing the $100,000 level may cause some confusion and hesitation, it is important to note that consolidation phases are often part of healthy market movements. Investors should be prepared for the possibility that Bitcoin will take some time before it can decisively cross the $100,000 level. If the price fails to maintain current levels, it may face further consolidation or retrace to find liquidity around $85,000, where strong support could emerge.
Such a pullback would likely be viewed as an opportunity for long-term holders, as Bitcoin’s fundamentals remain intact. After finding support, Bitcoin could resume its upward trajectory towards the $100,000 level and possibly break its all-time highs. As always, investors should monitor the market closely for signs of further price stability.
Featured image by Dall-E, chart from TradingView
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