Bitcoin (BTC) short-term holders back in profit, increasing the chances of a rally to $100,000

Bitcoin (BTC) surge above $91,700 on April 22 pushed its value above the short-term realized price or cost basis. This implies that a majority of short-term holders (STHs) are currently back in profit.

Bitcoin (BTC) price rose above the short-term realized price or cost basis on Saturday as it trades above $91,700.

This technical level is significant as it indicates that a majority of short-term holders (STHs) are now in profit.

STHs returning to profit after months of unrealized losses signals a bullish development, especially after the cryptocurrency’s recent struggle to break out of a price range. This also increases the chances of a continuation of the bull market and a potential $100,000 retest.

As DeepMind pointed out, during the early stages of a rally, STHs in profit usually provide momentum by holding firm and encouraging new investors to join.

CoinDesk’s analysis of Bitcoin’s supply mapping showed “strong activity” from first-time buyers in April, which signals fresh capital entering the market at higher prices.

According to on-chain data from blockchain analytics firm ChainGlass, long-term holders (those holding for more than 155 days) increased their aggregate allocation by 363,000 BTC since February.

Moreover, Bitcoin whales and sharks have absorbed 300% of the yearly issuance, highlighting the significant buying pressure at higher price levels.

Despite this week’s price breakout, Bitcoin researcher Axel Adler Jr. noted that the last strong resistance remains at $96,100. In an X post, the analyst said, “The last relevant price for the last strong resistance is $96,100.”

392,000 Bitcoin at $97K could trigger a sell-off

According to Bitcoin’s cost basis distribution data, investors collectively hold approximately 392,000 BTC at an average cost basis of $97,000. This price zone could act as a potential resistance, especially if a large portion of investors decide to sell at break-even.

However, anonymous trader Ezy Bitcoin highlighted that Bitcoin’s price action in the Wyckoff reaccumulation phase is “playing out beautifully”.

The chart showed continued strength in the cryptocurrency, with three price targets: $131,500 (target 1), $144,900 (target 2), and $166,700 (target 3).

This technical pattern, named after market technician William D. Jr. Wyckoff, points to possible accumulation by large players, signaling an upward trend for Bitcoin as the market absorbs supply and prepares for an uptrend.