Bitcoin has been struggling to reach the coveted $100,000 milestone since early February, facing market volatility that has kept it in a holding pattern.
However, a recent report has hinted at a possible shift in this trend, suggesting a bullish uptrend on the horizon as indicated by two key factors.
An analyst known as MAC_D from CryptoQuant believes that the bull cycle in the Bitcoin market is far from over. This assessment is based on the rising realized market capitalization of Bitcoin and the increasing proportion held by long-term holders (LTHs).
The realized market capitalization of Bitcoin, which calculates its total value at the last movement price, has hit a record high of $857 billion. This is a significant development as it accurately reflects the value held by long-term investors and the actual cost basis of the circulating coins.
When the realized market cap of BTC surges, it signifies that long-term investors are holding a larger share of the coin, with transactions occurring at higher prices. This demonstrates a strong belief in Bitcoin's future value and can alleviate selling pressure from LTHs, potentially leading to upward momentum.
The rise in the proportion of coins held by Bitcoin's long-term holders also supports this positive trend. The current ratio of 39.74% held by LTHs surpasses the ratio at the peak of the previous cycle, indicating potential for further price growth before hitting a cycle top.
While Bitcoin is currently trading at $96,834, above the support level at $95,513, a sustained increase in coins held by long-term investors could propel BTC towards the next resistance at $98,118. Breaking this key resistance level could pave the way for Bitcoin to surpass $100,000 and enter a new phase of the bull run.
However, the bullish outlook could be derailed if profit-taking intensifies, potentially causing Bitcoin's price to dip below $95,513 and even fall to $91,473. Keeping an eye on these key levels will be crucial in gauging the future trajectory of Bitcoin in the coming days.