Key Points
- Bitcoin’s recent rally has slowed down, with long-term holders beginning to sell as the cryptocurrency consolidates above $100,000.
- Bitcoin’s derivatives volume has surged by 74%, indicating cautious optimism among traders.
Bitcoin’s rally past $109,000 has been followed by a period of consolidation above $100,000. At press time, Bitcoin (BTC) was trading at $104,982, marking a 2.18% gain in the last 24 hours and a 3.58% rise over the past week.
The cryptocurrency’s 24-hour trading volume stood at $104.8 billion, and its market cap was $2.08 trillion, according to Coingecko data.
Long-Term Holders Selling Off
Long-term holders of Bitcoin, who held their positions through the correction period from March 2024, have started selling as the price surged past $100,000. This selling behavior was previously observed during the 2021 bull market.
Short-term holders, however, continue to take profits more frequently. Despite the selling activity, data shows that long-term holders still retain substantial holdings, suggesting that the current market cycle may not have ended.
Crucial Support Level Identified
Crypto analyst Ali identified $97,530 as a key support level for Bitcoin. This price point aligns with high activity levels, making it a crucial zone for price stability. If Bitcoin loses this level, it could potentially retrace to $93,856 or $90,000.
On the upside, resistance is expected near $100,967–$105,118, as many holders may begin to take profits in this range.
Bitcoin’s trading volume, according to Coinglass, surged by 73.27% to $172.56 billion. This suggests cautious sentiment among traders as the derivatives volume also saw a significant increase.
Bitcoin’s hashrate, a measure of network security and miner activity, was at 746.7 EH/s at press time. While not at its all-time high, this level indicates strong miner confidence and sustained investment in mining infrastructure.
As Bitcoin consolidates, traders and investors are advised to closely watch key levels to determine the next move in the ongoing market cycle.
