Bitcoin Faces Resistance Amid Profit-Taking, Says Glassnode
- Bitcoin is experiencing increased resistance after reaching a new all-time high last month.
- The resistance is due to profit-taking by long-term holders and buyers who purchased earlier.
- This marks the fifth major profit-taking wave in the current cycle, with realized profits per day at $1.47 billion.
- Selling pressure is notably from those who bought during historical price ranges of $25,000 – $31,000 and $60,000 – $73,000.
- On-chain support zones for Bitcoin are identified at approximately $103,700 and $95,600.
Trading Analysis
Trading Signal: BEARISH (Score: -6)
Elevated sell pressure and potential short-term correction risks contribute to a bearish outlook.
Price Levels:
Current: $105,007
Support: $103,700 | Resistance not specified
Catalysts:
• Increased profit-taking by long-term holders
• Market at a crossroads with potential mid-cycle consolidation or broader top formation
Key Factors:
• Significant selling from historical price range holders
• Realized profits rising to significant levels
The recent surge in selling pressure from long-term Bitcoin holders has raised concerns about a short-term market correction. With Bitcoin trading at $105,007 and key support levels identified around $103,700 and $95,600, the market’s direction remains uncertain amid intensified profit-taking activities.
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BTC Dips 1% After Profit-Taking Wave – $103,700 Support in Focus
– ? ↘️ SELL Signal (3/10) | Medium Risk Trade
– ? Entry: $104,500-105,200 | Targets: $103,700, $101,500 | Stop: $106,600
– ⏰ Act within 3-7 days
– ? Key: Bearish confluence of on-chain profit-taking and technical weakness.
Bitcoin dropped 1% as long-term holders took profits, triggering a bearish trading signal. On-chain data shows $1.47B in daily realized profits, adding to sell pressure. Price now tests the $103,700 support; breakdown risks a deeper correction to $95,600.
Technical Analysis: BTC/USD
SELL (Score: 3/10)
MEDIUM
Target 1: $103,700 (-1.5%)
Target 2: $101,500 (-3.5%)
Stop Loss: $106,600 (-1.8%)
Risk/Reward: 1:1.9 | Timeframe: 3-7 days
Bitcoin is showing technical weakness aligned with fundamental headwinds. The RSI at 55 indicates neutral momentum but lacks bullish conviction. Price is trading within Bollinger Bands but closer to the upper band at $106,563, suggesting limited upside. The bearish MACD histogram (-793) confirms weakening momentum. Most critically, the on-chain data reveals $1.47B in daily realized profits and significant selling pressure from long-term holders who bought at $25K-$31K and $60K-$73K ranges. This technical setup supports the bearish fundamental narrative.
- Immediate Support: $103,700 (On-chain support)
- Immediate Resistance: $106,563 (Bollinger Upper Band)
- Major Support: $95,600 (Secondary on-chain support)
- Weekend low volume could lead to false breakdowns or sudden reversals
- RSI remains in neutral territory, not confirming oversold conditions
- EMA20 ($104,611) below EMA50 ($105,021) shows short-term weakness but gap is narrow
- Bitcoin’s historical resilience near psychological $100K level could provide unexpected support
Trading Action
Consider a short position within the $104,500-$105,200 entry zone. Target 1 at $103,700 offers a 1.5% gain; target 2 at $101,500 offers 3.5%. A stop-loss at $106,600 limits risk. Invalidation comes from a decisive break above $106,600, suggesting resumed bullish momentum. Monitor weekend volume for false breakdowns. The 3-7 day timeframe accounts for potential volatility.
Bottom Line
Short-term traders can capitalize on this bearish confluence with a defined risk/reward setup. Long-term holders may consider reducing exposure. Watch $103,700; a break below signals further downside.
Not financial advice. DYOR.
