Bitcoin has had a volatile few days following its recent attempt to break above the long-awaited $100,000 level. Despite the initial excitement, BTC recovered somewhat and is now in a consolidation phase after rising to a new all-time high of $99,800. While some investors were hoping for a quick breakout into six-figure territory, the market appears to be catching its breath as traders assess the next move.

Top CryptoQuant analyst Axel Adler shared key data on X, showing that major players and institutional investors are holding their ground. The lack of significant selling pressure signals confidence in Bitcoin’s potential for further gains. This behavior among large investors could be a positive signal for long-term price momentum, even if short-term volatility persists.

The coming weeks will be crucial for BTC. With expectations of higher prices still intact, traders and investors are keeping a close eye on BTC’s ability to hold and regain upside momentum.

As BTC navigates this pivotal momentmarket participants are looking for clues to determine whether the leading cryptocurrency can finally surpass the psychological $100,000 level and set new benchmarks in its ongoing bull cycle.

Demand for Bitcoin remains strong

Demand for Bitcoin remains robust even after the recent pullback to the $90,000 level, as institutional and private interest in the leading cryptocurrency remains strong. Analysts and investors are closely watching Bitcoin’s consolidation below the critical $100,000 mark, awaiting signs of the next step in this ongoing bullish cycle.

CryptoQuant analyst Axel Adler shared some crucial on-chain data that paints a promising picture of Bitcoin’s future. Key figures show that major players are not rushing to sell their assets. The average whale inflow (SMA-30D) has remained stable at just over 5,000 BTC per day. This suggests that large holders are not abandoning their positions, but are holding on to their coins in anticipation of further price appreciation.

The inflow of Bitcoin whales into the exchange remains low
Bitcoin whale to currency inflows remains low | Source: Axel Adler on X

This pattern supports the view that whales and long-term investors view BTC as a valuable asset with significant potential for future gains. The lack of significant selling pressure indicates that these major players are confident in Bitcoin’s continued growth and are unaffected by short-term volatility.

As BTC continues to consolidate, the coming months will be critical for both BTC and the broader crypto market. With major investors holding firm and demand remaining strong, Bitcoin’s potential for a breakout above $100,000 remains intact. The coming months are likely to bring exciting developments as Bitcoin’s upward momentum could soon resume, sending both investor sentiment and market growth to new heights.

Consolidation before the next step up

Bitcoin is currently trading at $96,700, recovering from a recent pullback that saw its price fall from an all-time high of $99,800 to a low of $90,700. After several days of consolidation, BTC appears poised for a potential surge above $100,000. Market sentiment remains bullish, with many investors expecting further gains if the price can maintain upward momentum.

BTC consolidates below $100,000
BTC consolidates below $100,000 | Source: BTCUSDT chart on TradingView

However, the next few days are crucial for Bitcoin’s price action. If BTC fails to hold above the USD 96,000 level, there is a risk of a deeper retracement. A break below this level could trigger further consolidation or even a pullback to lower demand zones, potentially testing the $90,000 mark again.

On the other hand, maintaining the support above the USD 96,000 level would increase the chances of BTC successfully breaking the USD 100,000 resistance. Investors are closely watching this price range as it will likely determine whether BTC can continue its rally to new highs or face more short-term price corrections. The coming days could set the stage for Bitcoin’s next big move.

Featured image of Dall-E, chart from TradingView

By newadx4

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