Bitcoin is on the verge of a historic breakout, consolidating just below the highly anticipated $100,000 mark. After rising more than 8% since the beginning of the year, the leading cryptocurrency has captured the attention of investors and analysts alike. While the market remains cautiously optimistic, all eyes are on BTC for confirmation of its next big move.
Prominent analyst Axel Adler recently shared eye-opening data on X, revealing that 90% of the total Bitcoin supply is currently generating profits. This key metric highlights the strength of BTC’s recent rally and underlines the widespread optimism in the market. Adler notes that such high levels of profitability typically align with bullish market conditions, fueling expectations of a breakout above $100,000.
The psychological and technical importance of the $100,000 mark cannot be underestimated. A decisive move above this level could signal the start of a new phase in the BTC bull cycle, inviting fresh capital and generating renewed enthusiasm across the crypto space. However, as the price consolidates, investors are cautiously awaiting confirmation.
Bitcoin Bull Cycle Looks Strong
Despite the uncertainty and negative sentiment surrounding Bitcoin’s failure to surpass the $100,000 mark, the current market cycle remains strong and bullish. BTC continues to maintain key demand levels, reinforcing its bullish structure. Sideways consolidations, often misunderstood as stagnation, are critical to establishing large-scale moves, allowing the market to gain momentum.
The best analyst Axel Adler shared revealing data about Xhighlighting the resilience of the market. Currently, 90% of the total Bitcoin supply is in profit, a strong indicator of the health of the market. According to Adler, if the current cycle avoids “black swan” events (unpredictable and disruptive events), the market could follow a similar trajectory to the 2017 bull cycle. During that period (represented as “blue square #1”), Bitcoin demonstrated an uptrend with minimal pullbacks, maintaining a metric level of 80%.
Adler also reflected on the 2021 cycle (blue square #2), suggesting it could have followed the same bullish path if not for the disruptive effects of China’s mining ban. This event momentarily derailed the bullish trend, highlighting how external shocks can influence market dynamics.
As Bitcoin consolidates below $100,000, its current pattern reflects a healthy cycle primed for further growth. Investors are watching for a break above this psychological barrier, which could signal the start of the next bullish phase. With solid fundamentals and minimal disruptions, Bitcoin’s path forward looks increasingly promising.
Technical analysis: key liquidity levels
Bitcoin is trading at $99,100 after a strong bounce from the 200 4-hour moving average at $98,299. The price also found support at the 200 4-hour EMA, a key technical indicator that indicates strength in the short term. This rebound has left investors optimistic about the possibility of a bullish continuation in the coming days.
If BTC manages to decisively surpass the critical $100,000 mark, it would pave the way for a massive rally into uncharted territory. A confirmed breakout at this psychological and technical level is likely to attract significant buying pressure, further strengthening Bitcoin’s bullish momentum.
However, risks remain. If BTC fails to recover $100,000 in the short term, the market could enter a prolonged consolidation phase, testing investors’ patience and allowing liquidity to build up. Failure to maintain the current bullish structure could also lead to a deeper correction, potentially revisiting lower support levels.
Featured image of Dall-E, TradingView chart
