Bitcoin (BTC) is on the verge of reaching a historic milestone as its price nears the coveted $100,000 mark. This remarkable rally has fueled optimism among investors, signaling the asset’s continued dominance in the cryptocurrency market.
However, despite the bullish outlook, the cryptocurrency is not entirely immune to potential bearish pressure. The backbone of BTC’s price stability — long-term holders (LTHs) — appears to be faltering, raising concerns about potential bearish movements in the short term.
Bitcoin is losing support
Long-term Bitcoin holders have recently shown signs of bearishness. The HODLers Net Position Change indicator, which tracks the behavior of LTHs, has turned negative.
This shift indicates that a significant number of long-term investors are taking profits by selling their holdings. Negative values in this indicator usually signal a decline in confidence, which can put pressure on the asset's price.
Since LTHs are considered the backbone of the market, their selling activity has the potential to disrupt the overall momentum. This is because these investors often hold assets during market fluctuations, contributing to price stability.
When they start selling, it can lead to increased volatility, and if the trend continues, it could trigger a price correction. This potential selling pressure is something investors are monitoring closely, especially with the $100,000 threshold so close.
Bitcoin LTH Net Position Change. Source: Glassnode
However, the broader macro momentum remains strong. A key indicator to watch is the Network Value to Transactions (NVT) Golden Cross, which is currently in the neutral zone.
While not yet in bullish territory (below -1.6), the NVT Golden Cross is an important signal for Bitcoin’s future price movements. Historically, when the indicator enters the bearish zone (above 2.2), it is often considered a sell signal for the market.
However, Bitcoin has not yet reached this area, giving it room for further growth. The NVT Golden Cross is still a positive sign, indicating that Bitcoin has enough momentum to rise further before any possible decline.
Bitcoin NVT Golden Cross. Font: CryptoQuant
As long as the indicator remains in the neutral zone, Bitcoin has the opportunity to move towards $100K without facing significant immediate bearish pressure.
Price prediction
Bitcoin has seen significant upward movement in recent weeks, driven by institutional interest and increased adoption. If the current trend continues, the asset is poised to break through this psychological barrier, reaching a new all-time high of $99,595.
If it breaks the $100K mark, the next target could be $120K. A successful break above the first mark would likely trigger additional buying pressure from both retail and institutional investors.
However, the possibility of profit-taking by LTHs remains a concern as any significant selling could cause a temporary pullback.
Bitcoin Price Analysis. Source: TradingView
Despite short-term concerns, as long as Bitcoin maintains its position above key support levels, the long-term outlook remains bullish.
While the sell-off in LTHs could create some volatility, Bitcoin will likely continue its upward trajectory in the coming months unless there is a major disruption in the market.
The article Bitcoin (BTC) Prediction: When Will the Price Hit $100,000? was first seen on BeInCrypto.
