Bitcoin’s recent climb beyond $109,000 has slowed down in recent days, with the digital currency now consolidating slightly above the $100,000 mark. Currently, Bitcoin (BTC) is priced at $104,982, showing 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, while the market capitalization was reported at $2.08 trillion, as per Coingecko data.
Long-Term Investors Witness Selling Pressure
Long-term Bitcoin investors have initiated selling activities after holding onto their investments during the correction phase since March 2024, as indicated by the SOPR (Spent Output Profit Ratio) data. Throughout this phase, these investors refrained from selling off their holdings and instead accumulated more Bitcoin.
However, with the price surpassing $100,000, long-term holders have started liquidating, a pattern reminiscent of behavior observed during the 2021 bull market.
Source: CryptoQuant
Conversely, short-term investors are opting to pocket gains more frequently. The SOPR data for short-term holders exhibited multiple instances where the ratio exceeded 1.02, signaling profitable sell-offs. However, the absence of SOPR values above 1.06, typically present during market cycle peaks, suggests that there might be room for further growth before short-term profits peak.
Despite the selling pressure, UTXO data reflects that long-term holders retain significant holdings, indicating that the current market cycle may not have concluded yet.
Source: CryptoQuant
Crucial Support Seen at $97,530
According to renowned crypto analyst Ali’s recent social media post,
“Maintaining a value above $97,530 is critical for Bitcoin to uphold its current bullish trajectory.”
Data from Glassnode affirmed that this price level corresponds with heightened activity levels, making it a pivotal area for price stability. A breach beneath $97,530 could lead to retracement towards $93,856 or $90,000, given the historical significance of these zones.
On the upside, resistance is anticipated in the vicinity of $100,967–$105,118, potentially prompting profit-taking activities among investors.
Market Watch: Trading and Derivatives Activity Reflect Cautious Sentiment
Coinglass data indicates a 73.27% surge in Bitcoin’s trading volume to $172.56 billion, with Open Interest ascending by 1.19% to $68.52 billion. Options trading has also witnessed increased engagement, registering a 74.28% surge in volume to $6.61 billion, with Open Interest up by 3.95% to $40.62 billion.
Furthermore, funding rates have been on a downward trend, with the OI-weighted funding rate standing at 0.0038% as of January 24, 2025. This decline suggests reduced leverage within the derivatives market, reflecting a cautious sentiment among traders.
Hashrate Indicates Robust Network Security
Bitcoin’s hashrate currently stands at 746.7 EH/s, showcasing steady growth in network security and miner participation.
While not hitting its peak, this elevated hashrate level indicates strong miner confidence and ongoing investments in mining infrastructure, aligning with Bitcoin’s current price of $104,994.
As Bitcoin enters a consolidation phase, industry participants should monitor key levels closely to decipher the potential direction of the ongoing market cycle.