Bitcoin’s ‘profit wall’ is back — Can bulls punch through before the weekend?

• Bitcoin Lengthy-term holders approached a 350% revenue, hinting at doable distribution strain.
• Bullish momentum persevered as BTC climbed inside an ascending channel towards the $100K mark.

Bitcoin [BTC] approached a key psychological zone as long-term holder (LTH) profitability climbed towards the 350% mark—a stage traditionally related to elevated sell-side strain.

This threshold aligns with a Bitcoin value close to $99.9K, signaling a possible inflection level. On the time of writing, BTC traded at $96,256.73, down 0.35% intraday.

As this zone approaches, the market could face intensified distribution from seasoned holders, demanding robust purchaser presence to maintain momentum and clear the trail towards six figures.

Will Bitcoin’s ascending channel escape above $98K?

BTC continues to respect its ascending channel sample on the 4-hour chart, signaling sustained upward momentum. The value has not too long ago reclaimed the $96.3K stage, which now acts as a brand new assist zone. 

In the meantime, the $98K stage has emerged as key resistance, the place bulls could face challenges. Nonetheless, the sample additionally reveals a possible bounce and better highs, suggesting a breakout path towards $100K. 

Due to this fact, this short-term construction stays favorable for patrons if BTC holds its assist and follows the projected arrow trajectory.

Supply: TradingView

Are stronger fingers accumulating whereas retail steps again?

IntoTheBlock’s possession metrics reveal a delicate but significant shift in participant construction.

Retail participation has barely declined by 0.09%, whereas investor holdings elevated by 1.4%, suggesting average accumulation by medium-term holders. 

In the meantime, Whale Focus has remained unchanged, highlighting a section of consolidation. 

In impact, BTC seems to be rotating from smaller fingers to extra resolute traders—a redistribution section that would fortify the long-term value construction.

Supply: IntoTheBlock

Why does Derivatives knowledge present hesitation?

BTC’s Derivatives market has cooled off, reflecting cautious conduct amongst leveraged individuals.

Futures Quantity dropped by 31.03%, and Choices Quantity fell by 25.82%, with a corresponding decline of two.61% in Open Curiosity. 

Moreover, Choices Open Curiosity shrank by 6.31%, suggesting trimmed expectations of aggressive value motion. 

This decline in speculative momentum signifies merchants are ready for a clearer breakout above $98K earlier than committing capital, which may cut back short-term volatility till affirmation.

Supply: CoinGlass

Are on-chain and change metrics supporting a bullish bias?

A number of indicators level towards a positive market atmosphere. Notably, Giant Transactions (+0.63%), Deal with Focus (+0.89%), and In-The-Cash Wallets (+0.76%) signaled energy.

In the meantime, change indicators akin to Bid-Ask Quantity Imbalance (+1.37%) and Good Worth Alerts (+0.02%) lean bullish. 

Though Internet Community Progress stays impartial, the broader knowledge leans closely towards purchaser dominance. Due to this fact, the general alignment throughout metrics strengthens the case for continued upward motion.

Supply: IntoTheBlock

Can bulls conquer the $100K barrier?

Whereas LTH’s profitability close to 350% could set off distribution, the technical setup, investor accumulation, and favorable metric stack assist bullish continuity.

If patrons preserve the present assist at $96.3K and reclaim the $98K resistance, the worth could proceed in a step-by-step advance towards $100K. 

Due to this fact, the market construction favors a gradual bullish continuation, mirroring the arrow trajectory drawn within the chart above.