Bitcoin’s price is facing some headwinds, according to the analytics firm Glassnode. After hitting a new all-time high recently, the cryptocurrency is now seeing increased selling pressure.
Profit-Taking Pressure
Glassnode says this selling is coming from long-term Bitcoin holders who bought in at earlier price points, like $25,000-$31,000 and $60,000-$73,000. They’re cashing in their profits, creating a “supply overhang” that’s preventing the price from going much higher, at least for now. This is the fifth major profit-taking wave in the current Bitcoin cycle, with daily realized profits reaching a whopping $1.47 billion.
A Short-Term Dip? Or Something Bigger?
Glassnode describes the current situation as a “crossroads.” The increased selling could be a temporary dip (“mid-cycle consolidation”), or it could be the beginning of a more significant price drop (“broader top formation”). The coming weeks will be key to figuring out which scenario is more likely.
Key Support Levels
Glassnode identifies two key support levels for Bitcoin:
- $103,700: The first and stronger support level.
- $95,600: If the price falls below this level, it could signal a more serious correction.
Currently, Bitcoin is trading around $105,007. Whether it holds above these support levels will be crucial in determining the future price trajectory.
The Bottom Line
The increased selling pressure is causing uncertainty in the Bitcoin market. While a short-term correction is a possibility, the overall outlook remains unclear. Only time will tell if this is just a temporary blip or the start of a more significant downturn.
