Bitcoin (BTC) Consolidates Below $100K, All Eyes on the Verge of a Historic Breakout

Bitcoin is consolidating just below the highly anticipated $100K mark after surging over 8% since the start of the year. As the leading cryptocurrency inches closer to a historic breakout, all eyes are on BTC for confirmation of its next big move.

Related Reading: Bitcoin Bull Cycle Looks Strong Despite Failure To Break Above $100K – Here’s Why

90% Of Total Bitcoin Supply Is Now In Profit: Key Metric Highlights BTC Strength

Top analyst Axel Adler recently shared some insightful data on X, revealing that 90% of the total Bitcoin supply is currently in profit. This key metric highlights the strength of BTC’s recent rally and underscores the widespread optimism in the market.

Adler notes that such high levels of profitability typically align with bullish market conditions, fueling expectations for a breakout above $100K. A decisive move above this level could signal the start of a new phase in BTC’s bull cycle, inviting fresh capital and sparking renewed enthusiasm across the crypto space.

However, as the price consolidates, investors are cautiously awaiting confirmation of the next move. While the technicals and fundamentals point to a bullish breakout, anything can happen in the unpredictable world of cryptocurrency.

Bitcoin Bull Cycle Looking Strong

Despite the uncertainty and negative sentiment surrounding Bitcoin’s failure to break above the $100K mark, the current market cycle remains robust and bullish. BTC continues to hold key demand levels, reinforcing its bullish structure.

Moreover, sideways consolidations, often misunderstood as stagnation, are critical for setting up large-scale moves, allowing the market to build momentum.

Adler shared some insightful data, highlighting the market’s resilience. Currently, 90% of the total Bitcoin supply is in profit, a strong indicator of market health. According to Adler, if the current cycle avoids “black swan” events—unpredictable and disruptive occurrences—the market could follow a trajectory similar to the 2017 bull cycle.

During that period (depicted as “blue square #1”), Bitcoin demonstrated a bullish trend with minimal pullbacks, maintaining a metric level of 80%. Adler also reflected on the 2021 cycle (blue square #2), suggesting it could have followed the same bullish path if not for the disruptive effects of the China mining ban. This event momentarily derailed the upward trend, emphasizing how external shocks can influence market dynamics.

As Bitcoin consolidates below $100K, its current pattern reflects a healthy cycle poised for further growth. Investors are closely watching for a breakout above this psychological barrier, which could signal the start of the next bullish phase. With strong fundamentals and minimal disruptions, Bitcoin’s path forward looks increasingly promising.

Technical Analysis: Key Liquidity Levels

BTC/USD 4-hour chart showing price action around key demand at $98K.

Bitcoin is trading at $99,100 after a robust rebound from the 4-hour 200 moving average at $98,299. The price also found support at the 4-hour 200 EMA, a key technical indicator that signals strength in the short term. This bounce has left investors optimistic about the potential for a bullish continuation in the coming days.

On the 4-hour price chart above, we can also observe several crucial liquidity levels that could influence BTC’s near-term price action. A confirmed breakout past $100K will open up massive buy-side liquidity, contributing to a strong bullish momentum.

On the other hand, if BTC fails to reclaim $100K in the near term, the market may enter a prolonged consolidation phase, testing investor patience and allowing for liquidity to accumulate. A failure to maintain the current bullish structure could also lead to a deeper correction, potentially revisiting lower support levels.

Featured image from Dall-E, chart from TradingView