Bitcoin Rally Pauses Before $100K—What Next?
Bitcoin almost broke $100,000 last week, hitting $99,645 before resistance. CryptoQuant expert Percival says traders quit holdings for “relative safety” at psychological barriers like $100,000.
Percival said that Bitcoin had gained 57% from $73,000 to $99,800, making it one of the ‘top six exit rallies from consolidation zones.’ However, the CryptoQuant expert predicts Bitcoin consolidation.
BTC Faces Resistance Below $100K: What Next?
Percival stressed the Choppiness Index, a market momentum indicator. According to him, the measure shows Bitcoin's surge weakening weekly. The cryptocurrency may stabilize for weeks before rallying again.
Percival stated that Bitcoin's first post-consolidation slump lasted three weeks and dropped 18%, per typical market cycles, notably in 2020. If history repeats, the next rise may be late December.
The expert also stressed the importance of Long-Term Holder (LTH) behavior in Bitcoin's market dynamics. LTHs are making 350% profit and redistributing 575,000 Bitcoins worth $58 billion.
Bitcoin ETFs and institutional buyers like MicroStrategy have kept demand high.
Percival examined Short-Term Holder (STH) activities using STH Realized Profit and Loss. He said 30.2% of gains from this period go to short-term holders.
Moreover, Bitcoin's MVRV ratio exceeds 1.33σ, indicating the average token nears 1.4σ, indicating 40% unrealized gains. This zone historically signals the first pullback after a big surge, like in late 2020.
The Future of Bitcoin
Bitcoin's future may rely on its consolidation phase and institutional and retail investor activity.
Bitcoin may settle before pushing past $100,000 if the consolidation phase follows prior cycles. LTHs may continue to profit while STHs may stay active, causing short-term corrections.
Institutional demand for cryptocurrencies is shown via ETF inflows.
BTC's market capitalization is $1.9 trillion, and it trades for $96,353, up 0.3% today.