Will Bitcoin Bulls Break Through the ‘Profit Wall’ Before Weekend?

Key Points

• Long-term Bitcoin holders are nearing a 350% profit, potentially leading to increased sell-side pressure.
• Bitcoin’s price continues on an upward trajectory, with the potential to break the $100K barrier.

Bitcoin’s long-term holders (LTH) are approaching a profitability level of 350%, a point historically linked to increased sell-side pressure.

This milestone coincides with a Bitcoin price around $99.9K, indicating a potential turning point. Currently, Bitcoin trades at $96,256.73, marking a slight 0.35% intraday decrease.

Potential Market Challenges

As Bitcoin approaches this critical zone, the market may experience increased distribution from seasoned holders. This scenario would require a strong buyer presence to maintain momentum and pave the way towards the six-figure mark.

Bitcoin continues to respect its ascending channel pattern on the 4-hour chart, indicating ongoing upward momentum. The cryptocurrency has recently regained the $96.3K level, now acting as a new support zone.

Market Participant Shift

Ownership metrics from IntoTheBlock highlight a subtle yet significant shift in participant structure. Retail participation has slightly decreased by 0.09%, while investor holdings have increased by 1.4%, indicating moderate accumulation by medium-term holders.

The derivatives market for Bitcoin shows signs of caution among leveraged participants. Futures Volume has decreased by 31.03%, and Options Volume has declined by 25.82%, with a corresponding 2.61% decrease in Open Interest.

Several indicators suggest a favorable market environment. Large Transactions (+0.63%), Address Concentration (+0.89%), and In-The-Money Wallets (+0.76%) all signal strength. Furthermore, exchange indicators such as Bid-Ask Volume Imbalance (+1.37%) and Smart Price Signals (+0.02%) lean bullish.

While the near 350% profitability of LTHs may trigger distribution, the technical setup, investor accumulation, and positive metrics support a bullish continuation. If buyers can maintain the current support at $96.3K and reclaim the $98K resistance, the price may continue to advance towards $100K.