Bitcoin faces $88K risk before reaching $100K
Bitcoin's (CRYPTO:BTC) recent rally has sparked significant profit-taking activity among long-term holders (LTHs), according to Glassnode.
Glassnode reported that LTHs realised $2.02 billion in daily profits, setting a new all-time high.
These holders have distributed 507,000 BTC since September, reflecting an active release of dormant supply.
Although this figure is lower than the 934,000 BTC sold during an earlier rally, the daily distribution rate of 0.27% of total LTH supply marks a critical phase in Bitcoin's price discovery process.
According to Glassnode, such heightened profit-taking often introduces large volumes of supply into liquid circulation, supporting price discovery.
A detailed analysis revealed that coins held for six months to a year are the primary drivers of this sell-side pressure, accounting for 35% of realised profits, approximately $12.6 billion.
These coins were mainly acquired in 2023, reflecting a swing-trade approach by investors capitalising on the momentum from spot Bitcoin ETFs launched in January.
Conversely, holders with coins older than a year have exhibited conservative behavior, suggesting confidence in Bitcoin's long-term prospects.
Despite reaching a peak of $99,645 during its recent surge, Bitcoin faced a pullback of over $6,000 as short-term holders (STHs) took profits.
Currently trading above $96,000, Glassnode highlights a potential risk below $88,000.
This "air gap" in supply distribution—characterised by minimal trading volume—indicates a vulnerable price area.
Glassnode warns that this gap may lead to a correction if demand weakens or profit-taking intensifies.
For Bitcoin to break the $100,000 mark sustainably, the market must absorb ongoing sell-side pressure.
While strong demand exists, the current supply overhang could weigh on prices in the short term.
At the time of reporting, the Bitcoin (BTC) price was $96,096.63.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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