Key Points
- Long-term Bitcoin holders have started selling as the cryptocurrency consolidates above $100,000.
- Bitcoin’s trading volume and derivatives activity indicate cautious optimism in the market.
Bitcoin’s recent surge past $109,000 has experienced a slowdown, with the cryptocurrency now stabilizing just above $100,000. At the time of writing, Bitcoin (BTC) was trading at $104,982, marking a 2.18% increase in the last 24 hours and a 3.58% rise over the past week.
The 24-hour trading volume stood at $104.8 billion, and the market cap was at $2.08 trillion, as per Coingecko data.
Long-term Holders Begin to Sell
After holding through the correction period from March 2024, long-term Bitcoin holders have begun to sell as the price crossed the $100,000 mark. This selling pattern was previously observed during the 2021 bull market.
Short-term holders, however, continue to take profits more frequently. SOPR (Spent Output Profit Ratio) data for these holders revealed several instances where the ratio exceeded 1.02, indicating profitable selling. Yet, SOPR values above 1.06, often seen during market cycle peaks, have not been observed, suggesting potential for further price growth.
Despite the selling activity, UTXO data indicates that long-term holders still retain substantial holdings, supporting the idea that the ongoing cycle has not ended.
Crucial Support Level Identified
Crypto analyst Ali identified $97,530 as a key support level for Bitcoin, stating that maintaining above this level is essential for the current bullish momentum. Glassnode data confirmed that this price point aligns with high activity levels, making it a critical zone for price stability.
Should Bitcoin lose the $97,530-level, it could fall back to $93,856 or $90,000. These are areas of strong historical activity. On the upside, resistance is expected near $100,967–$105,118, as many holders may begin to take profits in this range.
Trading and Derivatives Activity
Bitcoin’s trading volume surged by 73.27% to $172.56 billion, with Open Interest rising by 1.19% to $68.52 billion, according to Coinglass. Options trading also saw increased activity, with a 74.28% rise in volume to $6.61 billion and Open Interest growing by 3.95% to $40.62 billion.
Funding rates have steadily declined, indicating reduced leverage in the derivatives market and reflecting cautious sentiment among traders.
Hashrate Shows Sustained Strength
Bitcoin’s hashrate was at 746.7 EH/s at the time of writing, reflecting consistent growth in network security and miner activity. Although not at its peak, this high level demonstrates strong miner confidence and sustained investment in mining infrastructure, aligning with Bitcoin’s current price of $104,994.
As Bitcoin consolidates, traders and investors should closely monitor key levels to predict the next move in the ongoing market cycle.
