Why the Bitcoin Rally to $105,000 May Fail to Reach a New All-Time High
The recent Bitcoin rally has caught the attention of investors as its price approaches $105,000. This leading cryptocurrency has gained momentum over the past month, driven by strong institutional interest and renewed market optimism.
However, opposing market conditions may hold Bitcoin back from achieving a new all-time high.
Bitcoin Holders Are Accumulating
Investor activity is very optimistic. In just the past week, over 30,072 BTC, worth more than $3.13 billion, has been purchased. This surge in buying activity has pushed net exchange positions to their lowest level in four months.
This metric indicates that more coins are being withdrawn from exchanges than deposited, a classic sign of accumulation.
Fear of losing profits is driving Bitcoin holders to accumulate quickly. As Bitcoin approaches its all-time high, long-term investors seem to be adding to their positions, betting on a new breakout.
While accumulation remains strong, macro trends present a mixed picture. The Liveliness indicator, a key on-chain metric, has experienced a significant spike since early May. Currently at its highest level in several weeks, it suggests that long-term holders (LTH) are beginning to liquidate.
An increase in Liveliness typically means that inactive coins are becoming active again, often signaling that early adopters are taking profits. This behavior could introduce new selling pressure to the market.
If Bitcoin's long-term holders continue to sell their holdings, it could undermine the bullish sentiment driven by new accumulation.
BTC Price Aiming for a New ATH
Bitcoin is currently trading at $104,231, just below the key psychological resistance of $105,000. However, technical data indicates that the actual resistance lies at $106,265. This price level has acted as a ceiling since December 2024, preventing Bitcoin from gaining further traction.
