Bitcoin’s price has made a strong recovery over the past few days, surpassing the $108,000 mark and positioning itself closer to previous all-time highs.
Investors appear to be showing patience, with a focus on holding their positions, but the question remains: can Bitcoin’s price momentum sustain itself and break into new highs?
Bitcoin is Safe From Selling
Despite the positive price movement, realized profits have remained relatively subdued in recent weeks. Bitcoin’s current price sits just a stone’s throw from its all-time high, yet only $872 million in profits are being realized per day. This is a stark contrast to the $2.8 billion and $3.2 billion realized profits seen during previous price surges, such as at the $73,000 and $107,000 price points.
This muted profit-taking suggests that investors are not compelled to cash out at current levels. The market needs either a substantial rise or a decline to trigger a shift in sentiment, pushing investors to take more decisive actions regarding their holdings.
Furthermore, the market sentiment reflects a cautious approach from investors. The sell-side risk ratio, which tracks the number of short-term holders selling their Bitcoin, saw an uptick in May but has since decreased.
This indicates a reduction in the selling pressure, as Bitcoin’s price remains in a range that isn’t alluring enough for short-term holders to sell.
However, the fact that short-term holders are not quick to sell signals that Bitcoin’s current value is not compelling enough for them to exit. Should the price continue to rise, there’s potential for more investors to feel incentivized to hold or accumulate further, contributing to an overall positive market sentiment.
BTC Price Aims At Further Rise
Bitcoin is trading at $108,948, very close to breaching the resistance of $109,476. This barrier marks the final hurdle before reaching the coveted $110,000 range. A clean break through this resistance would likely open the path for Bitcoin to test new highs, with $110,000 being the next significant milestone.
Sustaining the current momentum is essential for Bitcoin to surpass $110,000 and eventually flip it into support. If this occurs, the crypto king could steadily work its way to its all-time high of $111,980, which is less than 3% from the current price. However, it will require strong bullish momentum and investor confidence to maintain this upward trajectory.
If unforeseen circumstances lead to bearish macro cues, Bitcoin could face a potential drawdown. A rejection at $109,476 might pull the price back below $108,000, revisiting support at $105,585. Such a drop would invalidate the current bullish outlook and could signal a more extended consolidation phase for Bitcoin.
Disclaimer
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