Key Insights
- Bitcoin realized market capitalization increases indicating rising cycles continue.
- Bitcoin price stalls around the $96k mark and fails to gain momentum.
For the past two weeks, Bitcoin price has been struggling in a narrow range and fails to surge past the 20 day EMA mark hurdle. However, the realized market cap marked a new record, reaching all-time-high of $857 Billion.
This reflects the growing confidence among the long term holders and reduced selling pressure.
Bitcoin price was trading at $97.047 at press time. The trading volume soared over 12% in the last 24 hours and the market cap stood at $1.92 Trillion.
Bitcoin’s Uptrend Remains Intact: Analyst Weighs in
CryptoQuant’s pseudonymous analyst MAC_D states that “the Bitcoin market’s bull cycle continues to run” based on realized market capitalization and LTHs’ holding proportions.
The assessment is derived from analyzing how the current market capitalization relates to LTHs owning proportions.
This index now displays an upward pattern as it moves away from previous brief periods of market adjustment in Bitcoin price volatility.
The increase in realized market capitalization indicates new investors bought Bitcoin from long-term holders who earned profits after purchasing at lower prices.
The latest trend indicates BTC price bounced off its low points because new market entrants took over selling pressure.
According to historical data, Bitcoin holding among investors with long term positions who held for six months and more reveals a selling ratio of 39.74% which exhibits a significant increase from its previous peak of 15.66%.
The significant gap between the current market performance and expected highs reveals future growth potential.
However, Bitcoin price maintained its upward trend in the past few weeks while experiencing a significant rise in realized cap.
BTC Market Overleveraged? Analysts Warn of Potential Volatility
The Bitcoin liquidation heatmap indicates current market conditions show high leverage levels which will foster unpredictable price fluctuations while the cycles uptrend continues.
Major exchanges including Binance, Bitfinex and BitMEX showed significant long and short-liquidation growth that matched price movement intervals with strong peaks.
Bitcoin experienced heavy long position additions approaching the $97,000 price mark.
If major support levels at $95,000 and $93,500 break down the high volume of long positions could trigger a quick price decline through liquidation.
During price peaks the build-up of short positions indicates that an upward price squeeze might occur.
If BTC maintains its upward momentum through a squeeze scenario then it could swiftly damage short sellers before the price potentially rises to $100,000.
Bitcoin Price Prediction: Will BTC Break the $106K Hurdle?
A recent post on X by Captain Faibik revealed that BTC price has been moving inside an ascending triangle pattern.
In case of further upward movement beyond the $106k mark, a significant rally toward $120-$124k could be seen in the coming days.
Going forward, the Open Interest (OI) has dropped by over 0.41% with a price rise of over 1%, which highlights a short covering move in the past 24 hours.
The immediate support zones for Bitcoin were $95k and $93k. Until the support zones were defended by the bulls, the uptrend remained intact and further price rally could be seen ahead.
