Bitcoin (BTC) has recently experienced impressive gains, with a notable 46.59% rise in its monthly value, pushing its market capitalization to a remarkable $1.94 trillion. Despite this growth, Bitcoin’s price has recently been trading within a relatively narrow range, leading some to speculate about its next major move. While this consolidation phase has led to a slowdown in its momentum, analysts believe that Bitcoin could be poised for an even bigger rally, potentially surpassing the long-awaited $100,000 mark in the near future.

Bitcoin’s price has been under pressure in recent weeks, with no clear direction emerging. Despite some positive movements, including a 0.80% increase in the last 24 hours, the cryptocurrency has yet to break free from its current range. This has left investors wondering about its future trajectory. According to experts, Bitcoin’s price history and on-chain indicators suggest that the cryptocurrency is not near the peak of its current market cycle. Instead, it could still have significant room for growth before it reaches its ultimate high.

Alex Adler Jr., a well-known cryptocurrency analyst, recently shared a chart that illustrates Bitcoin’s performance using the Simple Moving Average (SMA) Multiplier, a tool designed to track market trends over time. The chart uses color-coded zones to represent Bitcoin’s market sentiment at different stages of its cycle. These zones range from green (indicating the beginning of a cycle) to black (representing the top of the cycle), showing how the market moves from accumulation to peak speculation.

Adler’s analysis suggests that Bitcoin is still far from reaching the peak of its cycle. In fact, he highlights that five more phases lie ahead before Bitcoin reaches its cyclical high, which is represented by the “black” zone. Historically, once Bitcoin enters this final phase, the market tends to experience a decline, signaling the end of the cycle. However, based on current trends, Adler suggests that Bitcoin still has considerable room to grow, potentially breaking the $100,000 threshold as it progresses through the upcoming stages of the cycle.

However, there are factors that could be slowing down Bitcoin’s rally. Profit-taking activity has been a significant concern recently, with many investors choosing to sell their holdings for a profit. This behavior is reflected in the Adjusted Spent Output Profit Ratio (aSOPR), a metric that tracks whether investors are selling Bitcoin at a profit or a loss. At the time of writing, the aSOPR was at 1.049, indicating that more investors are selling at a profit than at a loss. This ongoing profit-taking is exerting downward pressure on Bitcoin’s price and preventing it from experiencing a major breakout.

Moreover, the market’s buying and selling activity is also playing a crucial role in limiting Bitcoin’s upward movement. The Take Buy/Sell Ratio, which measures whether buyers or sellers are in control of the market, is currently reading below 1. This indicates that selling volume is currently outweighing buying volume, giving bears the upper hand and delaying any substantial price increase. Until this balance shifts in favor of buyers, Bitcoin may remain in its consolidation phase.

On a more positive note, there are signs that demand for Bitcoin is still strong, especially from U.S. investors. According to recent data from CryptoQuant, the Coinbase Premium Index, which tracks the price difference between Bitcoin on Coinbase and Binance, has been on the rise. A positive reading on this index suggests that U.S. investors are showing more interest in Bitcoin than their counterparts in other markets. This increased demand has provided some stability to Bitcoin’s price, helping to prevent further declines despite the profit-taking activity in the market.

In conclusion, while Bitcoin is currently in a consolidation phase and facing some challenges due to profit-taking and selling pressure, its historical trends and on-chain indicators suggest that it still has significant upside potential. As Bitcoin continues to progress through its market cycle, there is a strong possibility that it could surpass the long-anticipated $100,000 mark. Investors will be closely watching for any signs that market sentiment is shifting, as a change in momentum could trigger the next major rally for Bitcoin. For now, the cryptocurrency market remains in a holding pattern, with many eyes on Bitcoin as it prepares for its next move.