- Bitcoin short-term holders returning to profitability signals potential for a $100,000 price rally.
- Long-term investors have accumulated 363,000 BTC since February, with first-time buyers adding fresh capital in April.
- A significant resistance exists at $97,000 where holders of 392,000 BTC may trigger selling pressure.
Bitcoin surpassed $91,700 on April 22, pushing its value above the short-term realized price level. According to data shared by Glassnode, this milestone indicates that most short-term holders (STHs) have returned to profitability after a period of unrealized losses, signaling a potentially bullish outlook for the leading cryptocurrency.
The return to profitability for short-term investors typically creates favorable conditions for continued price appreciation. Historical patterns suggest that during early rally phases, profitable STHs tend to maintain their positions rather than sell, which attracts additional investors to the market and sustains upward momentum.
Market data indicates “strong activity” from first-time Bitcoin buyers in April, suggesting fresh capital entering the market even at higher price points. Meanwhile, long-term holders (those maintaining positions for more than 155 days) have increased their holdings by 363,000 BTC since February, while Bitcoin whales and sharks have absorbed 300% of the yearly new coin issuance.
Despite the recent price breakout, Bitcoin researcher Axel Adler Jr. identified $96,100 as the final resistance level before a potential $100,000 test. In his analysis shared on X, Adler noted, “At the $96K level, there will be the final resistance from the cohort holding coins for 3-6 months, after which the next target of $100K opens up.”
Potential Sell Pressure at $97,000 Price Level
Cost basis distribution data reveals approximately 392,000 BTC currently held at an average purchase price of $97,000. This concentration of holdings creates a significant resistance zone as investors who bought at these levels may be inclined to sell once they reach break-even, potentially interrupting Bitcoin’s upward trajectory.
However, trader Ezy Bitcoin argues that Bitcoin’s price action follows a Wyckoff reaccumulation pattern that is “playing out beautifully.” According to this technical analysis, Bitcoin could target three price levels: $131,500, $144,900, and potentially $166,700.
Technical Patterns Point to Continued Strength
The Wyckoff pattern identified by analysts suggests large market participants are accumulating Bitcoin, typically a precursor to significant upward price movement. This technical structure indicates the market is efficiently absorbing available supply while preparing for the next leg up.
Glassnode’s on-chain metrics further support this outlook, with data showing that short-term holder cost basis bands have been breached to the upside. Historically, this metric has served as a reliable indicator of changing market dynamics and potential trend continuation.
This analysis comes as Bitcoin has already broken through several key resistance levels in recent weeks, with market participants now watching the $97,000 level as the final hurdle before a potential push toward the psychologically important $100,000 mark.
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