Potential profit-Taking Could Dampen bitcoin’s Ascent

As Bitcoin flirts with unprecedented price levels, a new analysis suggests a important hurdle lies just ahead. On-chain analytics firm Glassnode indicates that a Bitcoin price of around $99,900 could trigger a wave of selling, perhaps slowing or even reversing its upward trajectory. This projection stems from the behavior of long-term holders and recent investors.

Long-Term Holders Eye Significant Profits

Glassnode’s research focuses on “long-term holders,” defined as wallets holding Bitcoin for over 155 days. Historically, these holders have shown a tendency to distribute their holdings when unrealized profits reach approximately 350%. This profit-taking behavior could introduce significant sell-side pressure as Bitcoin approaches the $99,900 mark.

Historically, LTHs begin distributing more aggressively around a 350% unrealized profit margin, which aligns with a $BTC price of ~$99.9k. As the market nears this level, increased sell-side pressure is likely, requiring strong demand to absorb it.
Glass Node (@glassnode) may 2, 2025

Currently, Bitcoin’s price is experiencing high volatility. such as, in the past week, we’ve seen daily swings of up to 5%, indicating the market’s sensitivity to potential sell-offs.

Recent Buyers Face Break-Even Point

Adding to the potential selling pressure are investors who acquired Bitcoin earlier this year, specifically within the $95,000 to $98,000 range. These investors weathered a dip to as low as $75,000 last month and are now nearing their break-even point. The temptation to secure their initial investment after a period of uncertainty could lead to further sell orders.

key Resistance Level Ahead

Glassnode emphasizes the substantial volume of Bitcoin purchased within the $95,000 to $98,000 range. This concentration of coins could act as a significant resistance level. A strong breakthrough of this level could propel Bitcoin into uncharted territory, exceeding $100,000 and entering a true price revelation phase. However, failure to overcome this resistance could lead to a price correction.

Market Dynamics and Future Outlook

The interplay between long-term holder behavior,recent investor sentiment,and key resistance levels will likely dictate bitcoin’s price action in the coming weeks. While strong demand could absorb the potential sell-off, a failure to do so could result in a period of consolidation or even a price decline.Investors should closely monitor these dynamics as Bitcoin navigates this critical juncture.