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Bitcoin (BTC) gains attention as potential price approaches resistance levels; This creates excitement for a possible recovery towards the $100,000 level.
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Along with increasing short-term investor profits, market dynamics also indicate a strong shift in sentiment that supports bullish trends.
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As COINOTAG analysts noted, “If Bitcoin continues on its current course based on historical analysis, a return to higher price levels seems inevitable.”
As Bitcoin approaches a critical milestone, short-term investors are looking to maximize their profits, with historical patterns suggesting an uptrend towards $100,000.
Short-term growth in investor profits creates new levels of support
At the time of writing, Glassnode’s data revealed that there has been a significant increase in unrealized profits of Bitcoin (BTC) short-term investors (STH). Short-term investors are defined as those who hold BTC for no more than 155 days, or approximately five months.
Often, short-term investors sell to make a profit; but in this case, they chose to keep their BTC instead of taking the profit, accumulating a total profit of more than 7.9%. This gain is determined by comparing the market value with the realized value (MVRV) in this group.
When unrealized profits rise, it usually means that short-term investors refrain from selling and prefer to hold their BTC. This behavior bullish signal It is evaluated as.
If this trend continues, the average price at which short-term investors acquired their BTC—approximately $86,600 shown on the chart—will act as a new support level for the price to rise.
In other words, if Bitcoin falls, it could create a significant level of support and provide sustained bullish momentum, taking into account the overall cost basis.
Historical data shows that BTC could rise
According to analyst James Van Straten, the current 15% decline in the price of Bitcoin follows historical market cycles that have previously seen similar slight declines.
In his analysis, he also stated that BTC has the potential for further growth, but could see further declines as we enter January.
However, several important events, such as the presidential inauguration of Donald Trump on January 20, could significantly affect the Bitcoin market flow.
Others, such as analyst TonytheBullBTC, found that BTC followed a similar trend in January last year, leading to its new high.
According to him,
“The (current) corrective behavior on Bitcoin is similar to January; But it continues at twice the speed.”
The two-day time frame chart on the left shows that BTC then entered a corrective phase where it recovered, allowing it to reach a new high of around $73,777 in 2024.
The chart on the right shows BTC following the same pattern on the current chart. If this pattern is fully met by January 2025, BTC could reach a new all-time high, which the broader market outlook suggests.
Overall, BTC continues to show an optimistic outlook; Short-term investors and historical data play a vital role in possible price movements.
Conclusion
As Bitcoin deals with recent market volatility, the resilience shown by short-term investors and the validity of historical price patterns paint a potentially promising picture for BTC. With support levels established and positive market sentiment, investors and traders will be closely watching price movements in January.
