Bitcoin reached an important milestone this week, with prices not only successfully breaking through historical highs but also briefly hitting a peak of $122,000. According to a report by Glassnode, this strong performance has turned all Bitcoin investors' accounts into profit status.
This rise has successfully broken through two key historical accumulation zones, releasing an extremely strong bullish signal and significantly boosting investor confidence in the market. From a macro perspective, this signifies that the market has escaped the previous consolidation pattern and has entered a price discovery phase driven by new demand, with overall momentum being very strong.
However, amidst the market optimism, on-chain data reveals potential warning signals. The group of 'short-term holders,' who are sensitive to price, currently holds significant unrealized profits, which has pushed multiple indicators describing this group's behavior into overheated territory.
As profits expand, they will cash in their positions, and the motivation to realize profits is increasingly strengthened. Data shows that since the price broke new highs, the market has observed the first wave of significant profit-taking, where the 'realized profit-loss ratio' surged sharply, far exceeding normal volatility ranges, which is a typical characteristic of the market entering a euphoric phase.
Based on historical experience looking to the future, major market tops usually do not occur in one fell swoop but require several waves of sustained profit-taking selling pressure to form. The current profit-taking is just the first wave, which means that if market demand can remain resilient, Bitcoin still has the potential to usher in the next wave of price increases.
Based on data model analysis, the next meaningful key resistance level is around $130,000. Although the bullish momentum remains strong, signs of pressure have emerged on the demand side. Glassnode reminds investors to remain cautious in the short term while enjoying the bull market, and to closely monitor changes in market dynamics.
"MICA Daily | Glassnode Report: Bitcoin is expected to encounter key resistance at $130,000" This article was first published on (Blockcast).
