- Bitcoin is trading below its recent resistance near $104,000 to $105,000, with some investors expecting a pullback to $90,000.
- On-chain data shows that current profit taking is not strong enough to interrupt Bitcoin’s upward momentum.
- Analysts see the current price movement as consolidation in a “bull flag,” a pattern often followed by additional gains.
- Large liquidations and high spot trading volumes marked Bitcoin’s recent surge, supported by significant ETF inflows and company announcements.
- Some analysts warn of a possible short-term dip to $100,000 or $90,000 to test support levels before a further rally.
Bitcoin’s price remained below the $104,000 to $105,000 range this week, an area many analysts identify as resistance. Investors are watching closely, with some expecting prices to fall to $90,000 if selling increases near these levels.
Despite profit taking, on-chain data suggests the selling pressure is weak compared to historical standards. Bitcoin’s recent surge to $105,900 from $74,400 was marked by large trading volumes, sizable liquidations in margin markets, and strong inflows to spot Bitcoin ETFs.
According to Glassnode, the realized profit for short-term Bitcoin holders has increased but remains below levels seen when Bitcoin reached all-time highs in the past. The firm stated, “Recently, the magnitude of STH Realized Profit has surged to almost +3 standard deviations above its 90-day average, reflecting a notable uptick in profit realization. In past cycles, particularly during rallies towards the ATH, this metric has historically climbed to over +5 standard deviations of more. This signals that much stronger profit-taking pressure is often required to overwhelm the inflow demand.” This indicates there is still room for upward price movement.
Technical charts show Bitcoin consolidating in what analysts describe as a “bull flag.” In trading, a bull flag is a pattern where the price pauses within a narrow range after a sharp rise. A breakout from this range often results in another upward movement.
Some analysts, including those at Material Indicators, believe Bitcoin could briefly dip to $100,000 or $90,000 if there is no significant buying catalyst, as liquidity in order books suggests. Analyst Daan Crypto Trades added that the $90,000 level is a key point for long-term holders, and he remains “cautiously bullish” if Bitcoin stays above that threshold. He noted, “I would not be surprised to see a short-term flush if stocks were to roll over and make a higher low somewhere. Considering most stocks moved 30% to 50% in a single month, this wouldn’t be that crazy either.”
As of now, traders remain alert to movements in the broader equity markets as they assess Bitcoin’s next direction. This article does not constitute investment advice, and investors should conduct their own research.
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