Bitcoin has faced significant selling pressure above the $100K mark, leaving the market leader struggling to regain momentum. After a stellar rally, BTC is now testing its ability to push past critical resistance, as traders and investors remain cautious about its short-term trajectory.
Top analyst Axel Adler recently shared insights on X, highlighting key metrics that suggest the market is entering a cooling phase. In response to Adler, the Block P/L Count Ratio model—an indicator that tracks Profit and Loss inside each block on the BTC network—shows a gradual decline in activity as profits are realized. Investors securing maximum gains at $90K–$100K levels have contributed to this shift, signaling a possible slowdown after the bullish frenzy.
The present market environment reflects a mixture of optimism and hesitation as BTC consolidates near its psychological resistance. While the broader sentiment stays cautiously bullish, the cooling of market dynamics could extend the consolidation phase.
As Bitcoin struggles to beat this critical barrier, the following few days will likely be pivotal in determining its direction. Whether BTC manages to push above $100K or settles right into a more prolonged consolidation, its performance will likely set the tone for the broader crypto market.
Bitcoin Facing Risks
Bitcoin’s struggle to reclaim the $100K mark has placed the market leader at a crossroads. While the value shows resilience, every single day spent below this critical level raises questions on the strength of the bullish structure. To verify a continued rally, BTC must break through and hold above $100K, signaling renewed confidence available in the market.
Axel Adler recently shared critical insights on X, shedding light on the present market dynamics. Adler’s evaluation focuses on the Block P/L Count Ratio model, a key metric that tracks Profit and Loss activity inside each 10-minute Bitcoin block. The info reveals that after investors locked in maximum profits at $90K–$100K, the metric has dropped significantly, from levels above 100K to 159. This sharp decline suggests a cooling market as trading activity slows and participants reassess their positions.
Adler notes that the period of time BTC will spend at these levels depends heavily on demand. If buying pressure stays stagnant, the market could struggle to sustain its current valuation, increasing the chance of a deeper correction. Conversely, a surge in demand could rapidly push BTC back above $100K, reigniting the bullish trend.
The approaching days will likely be crucial in determining Bitcoin’s direction. A decisive reclaim of $100K would solidify its bullish outlook, while prolonged consolidation below this mark could test investor confidence. As traders monitor these developments, Bitcoin’s ability to navigate this pivotal phase will likely shape the broader crypto market’s trajectory.
Struggle Below Key Moving Average
Bitcoin is currently trading below the critical 4-hour 200 moving average at $98,208, a key level that should be reclaimed to substantiate a bullish structure. This mark has turn out to be a major resistance point, and the value appears to be setting a lower high inside the primary liquidity range between $108K and $92K. This signals potential risks for further downside if momentum doesn’t shift soon.
The $98,208 level is pivotal for Bitcoin’s short-term trajectory. A failure to interrupt above this moving average could indicate that bearish pressure stays dominant, potentially driving the value toward lower demand zones closer to $92K. Such a move would challenge the broader bullish narrative and test investor confidence.
For bulls to regain control, BTC must decisively break out above the $100K mark in the approaching days. A successful move above this psychological and technical level would likely trigger a powerful rally, attracting renewed buying interest and solidifying the bullish structure.
Featured image from Dall-E, chart from TradingView