Analytics platform Glassnode is outlining the possible path ahead for Bitcoin (BTC) amid a period of intense profit-taking.
According to the analytics platform, Bitcoin is facing growing resistance after reaching a new all-time high last month.
The resistance can be attributed to exhaustion from profit-taking by long-time Bitcoin holders and exhaustion from buyers who purchased earlier, according to Glassnode.
Over the short term, the intensifying profit-taking could point to a distribution phase and not a fresh breakout.
“Altogether, the market appears to be at a crossroads, shaped by elevated sell pressure, maturing bullish momentum, and demand that must prove itself resilient. The coming weeks will be crucial in determining whether this is a mid-cycle consolidation or the start of a broader top formation.”
Glassnode says the market is experiencing the fifth major profit-taking wave in the current cycle, with the realized profits per day having risen to $1.47 billion.
“The most notable selling pressure has come from cohorts who accumulated during key historical ranges: $25,000 – $31,000 and $60,000 – $73,000. These groups, many of whom held through multiple volatility phases, are now contributing to the supply overhang that appears to be capping further upside, at least in the short term.”
The continued selling pressure from long-term holders is raising the risk of a short-term correction, according to the analytics platform. The first on-chain support zone for Bitcoin, according to Glassnode, is around $103,700, while the second one is at around the $95,600 price. If the latter is breached, Glassnode says it could be a confirmation of a potential “broader risk reset.”
Bitcoin is trading at $105,007 at time of writing.
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