Bitcoin has shown remarkable resilience in recent days, avoiding a break of the crucial support level at 100,000 dollars despite the severe market fluctuations.
The ability of the king of cryptocurrencies to maintain its position despite pressure indicates a fundamental strength. What many see as a downward trend has actually revealed strong structural support within the market.
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The realized profit/loss ratio, which measures the net profitability of investors, supports this bullish interpretation. The 90-day simple moving average (SMA) currently stands at 9.1, reflecting a moderate cooling from July's peak. However, profits remain more than double the levels recorded during the last two bear market phases when the P/L ratio fell to 3.4.
This indicates that investors are not in a panic state and that the recent declines are largely driven by light profit-taking rather than capitulation. Ongoing profitability among Bitcoin holders suggests that market participants are confident in the long-term outlook.
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On-chain data also highlights the role of Bitcoin whales in driving this upward momentum. These large investors are taking the opportunity to accumulate the currency during moments of weakness. Addresses holding between 10,000 and 100,000 BTC have collectively bought over 300,000 BTC this week after prices briefly touched $101,000.
This wave of accumulation, estimated at around $32 billion, shows a strong conviction among widespread holders. Their buying activity has helped push Bitcoin's recovery to exceed the $105,000 mark, bolstering the argument for a sustained bullish trend.
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At the time of writing, Bitcoin is trading at $106,148, comfortably above the support level of $105,085. The recent surge led by whales has pushed Bitcoin past its critical psychological resistance, indicating renewed optimism among investors.
Due to improved sentiment and increased institutional accumulation, Bitcoin could continue its rise towards $108,000 and possibly retest $110,000 in the coming days. Sustained demand and the presence of stable economic conditions will further support this momentum.
However, if short-term traders resume profit-taking, Bitcoin's price may drop again below $105,000. This could lead to a retest of Bitcoin's support at $101,477, causing a temporary halt to its upward trajectory.
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