Bitcoin Bulls Target $100,000 Resistance as On-Chain Metrics Signal a Supply Squeeze

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

Bitcoin price analysis reveals a bullish outlook as the cryptocurrency approaches the crucial $100,000 resistance level. A confluence of factors, including increased institutional participation, is bolstering market sentiment.

In addition to these drivers, on-chain metrics such as the Miner Net Position, HODL Waves, and net exchange flows provide further insight into Bitcoin's current trajectory as it enters December.

Bitcoin’s on-chain metrics present a bullish picture as the cryptocurrency closes in on the critical $100,000 resistance. Commencing the analysis, the Miner Net Position metric showcases a consistent reduction in selling pressure by miners, which is indicated by the declining red bars on the chart.

This shift in behavior suggests that miners, who have historically been a major selling force, are now opting to hold onto their reserves in anticipation of higher future prices.

Furthermore, the sustained rise in selling pressure coincides with Bitcoin's recovery from a dip around $92,000, highlighting a supportive environment for the bulls.

Delving deeper into the on-chain analysis, the HODL Waves provide a visual representation of the duration for which different cohorts of Bitcoin holders have maintained their assets.

In this regard, the chart reveals a growing trend of long-term accumulation, which is evident in the noticeable expansion of holding bands exceeding one year. This behavior signals strong conviction among long-term investors.

Conversely, a contraction in short-term holding bands (ranging from one day to three months) showcases a decrease in speculative activity.

This shift in holding patterns, with a focus on long-term accumulation and a reduction in short-term trading, aligns with the observed miner behavior and bodes well for sustained price increases.

To conclude, the netflow data provides a clear indication of investor accumulation, with a sustained trend of Bitcoin outflows from exchanges.

When holders withdraw Bitcoin to cold wallets, they are essentially removing it from the liquid supply available for trading. This behavior contributes to the buildup of buying pressure and increases the potential for sustained price movements to the upside.

Overall, the on-chain metrics paint a picture of a supply-constrained market entering December, with bullish sentiment being driven by long-term accumulation, reduced miner selling, and institutional demand.

Should the psychological barrier of $100,000 be breached, it could pave the way for the token to reach new all-time highs in the coming weeks.