Crypto analytics firm Glassnode is warning that Bitcoin (BTC) may soon run up against a strong resistance level.
The firm says on the social media platform X that long-term holders (LTHs) of Bitcoin – entities that have kept their coins inactive for at least 155 days – may start selling BTC near the $100,000 level based on the unrealized profit margin metric, potentially causing a market correction.
[adinserter block="1"]“Historically, LTHs begin distributing more aggressively around a 350% unrealized profit margin, which aligns with a BTC price of ~$99,900. As the market nears this level, increased sell-side pressure is likely, requiring strong demand to absorb it.”
Glassnode also says that LTHs are gobbling up Bitcoin since it broke into the $90,000 range late last month, suggesting it may soon hit the $99,000 level.
“Long-Term Holders continue to accumulate, with +254,000 BTC aging beyond 155 days since the recent low – many bought above $95,000. Spending remains light, signaling renewed confidence and a lack of interest in de-risking at current prices.”
Lastly, the analytics firm says that if Bitcoin is able to break through the $100,000 resistance level, the flagship crypto asset will likely hit new all-time highs.
“A large cluster of coins was acquired between $95,000-$98,000, meaning some BTC holders may exit at breakeven. This, combined with rising LTH profits, creates a key resistance zone. A clean breakout could open the path to price discovery above $100,000.”
Bitcoin is trading for $96,675 at time of writing, flat on the day.
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