Bitcoin Again Targets $100K as Bulls Eye a Supply Squeeze.
NOIDA (CoinChapter.com) — Bitcoin bulls are again targeting the critical $100,000 resistance, with the cryptocurrency rallying to $97,290. This recent upward momentum follows a volatile week, as Bitcoin recovered from a dip near $92,000 to regain traction.
Market sentiment appears bullish, bolstered by a convergence of factors, including increased institutional participation. Alongside these drivers, on-chain metrics such as the Miner Net Position, HODL Waves, and net exchange flows provide insight into Bitcoin’s current trajectory as it enters December.
On-Chain Metrics Signal a Supply Squeeze For Bitcoin
Bitcoin’s on-chain metrics paint a bullish outlook as the cryptocurrency approaches the critical $100,000 resistance level. The Miner Net Position metric reflects a consistent reduction in selling pressure by miners, indicated by declining red bars on the chart.
BTC miner net position change. Source: Glassnode
The shift suggests that miners, traditionally major sellers, are opting to hold onto their reserves in anticipation of higher future prices. Historically, such behavior has reduced the immediate supply of Bitcoin in the market, paving the way for price rallies.
Moreover, the decreasing selling pressure coincides with Bitcoin’s recovery above $92,000, demonstrating a supportive environment for the bulls.
BTC HODL waves.
The HODL Waves further reinforce this bullish narrative by highlighting a growing trend of long-term accumulation. A noticeable expansion in holding bands exceeding one year indicates strong conviction among long-term investors.
In contrast, a contraction in short-term holding bands (ranging from one day to three months) signals diminished speculative activity. The transition reduces the liquid supply available for trading, creating historically favorable conditions for sustained price increases.
Such accumulation behavior reflects investors’ confidence in Bitcoin’s long-term potential, particularly as the asset gains traction among institutional players and retail investors.
Bitcoin net flow across all exchanges.
The netflow data complements this analysis by illustrating consistent Bitcoin outflows from exchanges, a clear signal of investor accumulation. When holders transfer Bitcoin to cold wallets, the liquid supply available for trading is reduced, increasing the likelihood of upward price momentum.
These metrics underscore a supply-constrained market entering December, with bullish sentiment driven by long-term accumulation, reduced miner selling, and institutional demand. Overcoming the psychological $100,000 barrier could propel the token toward new all-time highs in the coming weeks.
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