Bitcoin Struggles to Reclaim $100k Levels as Market Indifference Grows

Over the past week, Bitcoin [BTC] has struggled to reclaim and hold its levels above $100k on the charts. This market weakness is a sign of growing

Bitcoin [BTC] has failed to reclaim and hold its levels above $100k on the charts over the past week. This market weakness is an indication of growing market indifference, with sellers strategically entering the market to take profits or sell to avoid further losses. In fact, BTC was trading below $100k for the 4th consecutive day at the time of writing – A first in 2025.

Many have been prompted to speak out due to these market conditions, including CryptoQuant’s Crazzy, who recently highlighted the significance of the aforementioned level for the world’s largest cryptocurrency.

Bitcoin must hold above $100k for a reason

The $100k price level is currently more important than ever, according to CryptoQuant. Its significance arises from the need for short-term holders to become profitable.

New investors who have held BTC for less than a month are currently seeing losses of 3%. Additionally, those who have held Bitcoin for less than 6 months have seen their profit margins decrease from 30% in November 2024 to 7% at press time.

While the drop presents opportunities for new buyers to r-enter the market and those considering DCS, BTC needs to hold above $100k to restore market confidence.

If Bitcoin remains below $100k, investors will see more losses, leading to reduced investor sentiment. Especially for STHs, leading to panic selling.

For BTC, $100k is not only a psychological level but it is key to avoiding capitulation as market confidence depends on it. Here, it’s worth noting that a failure to hold these levels would result in prolonged stagnation and even more losses in the short term.

Can it recover to reclaim these levels?

Bitcoin has had trouble reclaiming higher resistance levels, but the market has not yet reached its peak. For example, according to AMBCrypto’s analysis, Bitcoin is currently experiencing a healthy retracement before the next leg up.

Therefore, BTC is still in a position to register more gains on its price charts.

For instance, Bitcoin’s long-term holder supply has seen a sustained rise as of late. This seemed to imply that LTHs are not panic selling and might just continue to accumulate.

This can be further evidenced by the fact that although the LTH SOPR declined, it has remained above 1 at 1.8.

With the LTH SOPR at these levels, it means that long-term holders’ profit taking is slowing down and it’s yet to turn to panic selling. This is a healthy correction within a bull market as LTH expects a less aggressive price hike in the short term.

Moreover, we can see this reduced selling pressure among active participants in equal measures. This can be evidenced by reducing exchange inflows. In fact, exchange netflows returned to negative territory after turning positive over the past day. Netflows declined to -780.2, suggesting that more Bitcoin is leaving exchanges than entering – A sign of a shift in sentiment to bullish.

In conclusion, while long-term holders have not lost confidence, Bitcoin must avoid further losses. The prevailing market conditions show that LTHs are the ones supporting the market as short-term holders are at a loss or have low profits. Therefore, a trend reversal will strengthen LTHs conviction while restoring STHs confidence.

Simply put, Bitcoin will have to break out and reclaim $100k for a bullish outlook to hold.