However, concerns persist as short-term Bitcoin holders begin to make sizable profits, sparking fears of a sudden market reaction.
Bitcoin investors are strangely silent
Despite the BTC price moving above the $100,000 mark, Bitcoin investor sentiment seems muted. Historically, Bitcoin has often evolved contrary to individuals’ expectations. The current lack of waves of euphoric buying or desperate selling indicates a cautious approach within the market.
This moderate sentiment contrasts sharply with past reactions, when the price of Bitcoin crossed major thresholds. Moreover, news feeds on social networks, full of optimism or extreme pessimism, generally signaled strong market movements. Absent these extremes, the current uncertainty suggests a cautious outlook among more experienced Bitcoin investors and retail traders.
The MVRV ratio of short-term holders (STH) of Bitcoin signals a critical moment. Currently, short-term holders are averaging a 10% profit, raising concerns about profit-taking activity. Indeed, in the past, these Bitcoin investors have been quick to sell their holdings at the first signs of gains, which could potentially trigger a market decline.
Current ratio levels suggest that a sell-off may therefore be imminent as the profitability of these holders increases. The market as a whole, however, remains resilient, with long-term investors still holding tight to their BTC, easing fears of a sharp decline. However, the potential for profit-taking remains a risk factor.
A key support for any new rise
Bitcoin price now sits at $101,714, marking a notable recovery above the $100,000 threshold. This momentum could position the asset for a new target at $105,000, at least if support at $100,000 is confirmed. Positive market signals and investor optimism could fuel this rally, solidifying Bitcoin’s new uptrend.
However, it will be crucial to maintain the $100,000 level as a support floor. If this level does not hold, it could trigger a correction, pushing Bitcoin to $95,668. This would then negate the bullish outlook and erase a considerable portion of its recent gains, dampening investor enthusiasm.
However, if the #1 crypto manages to turn the $100,000 mark into support, the market could benefit from further bullish momentum, pushing the BTC price to new highs. For now, however, vigilance is required as short-term Bitcoin holders could act as a disruptive force.
Moral of the story: When the little porter collects, the hodler cries.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
