Bitcoin’s price has been struggling to break past the $100,000 mark in early February amid ongoing market volatility. Despite these challenges, new data and indicators point to the possibility of further price gains. Specifically, Bitcoin’s realized market cap and shifts in long-term holder (LTH) dynamics suggest the cryptocurrency could be poised for a rally in the coming weeks.

Bitcoin’s Realized Market Cap Hits $857 Billion

Bitcoin’s realized market capitalization, which represents the total value of Bitcoin at the price it last moved, recently reached an all-time high of $857 billion. This metric is important because it provides a clearer picture of the actual value held by long-term investors, as it reflects the price at which Bitcoin was acquired rather than its current market value. The fact that Bitcoin’s realized market cap has surged to such a level is a sign that long-term holders continue to be confident in Bitcoin’s future, especially as more coins are being held at higher prices.

This is significant because, with more coins held at a higher cost basis, selling pressure from long-term holders tends to be lower. Typically, these investors are less likely to sell their assets unless Bitcoin’s price reaches significantly higher levels. Consequently, the reduction in selling pressure could pave the way for future price increases as fewer holders are willing to sell at current levels.

Long-Term Holder Proportions Increase

Another important signal that Bitcoin is in a strong position for further gains is the rise in the proportion of Bitcoin held by long-term holders. Currently, long-term holders control 39.74% of Bitcoin’s total supply, a sharp increase from just 15.66% at the peak of the last market cycle. This shift is significant because the increase in the proportion of Bitcoin held by LTHs indicates that the market is still in an accumulation phase rather than nearing its peak.

During previous bull markets, the proportion of Bitcoin held by LTHs was much lower at the time of the price peak. The current ratio suggests that Bitcoin still has room to grow before reaching its cycle top. With a larger percentage of Bitcoin now in the hands of long-term holders, it suggests a more stable market, as these investors are typically less likely to sell under short-term price fluctuations.

Bitcoin Price Outlook: Can It Break $100,000?

Bitcoin is currently trading around $96,834, holding above the key support level of $95,513. If long-term holders continue to increase their positions, Bitcoin could test the next resistance level at $98,118. A successful breakout above this level could open the doors for Bitcoin to surge past $100,000, which has been a key psychological barrier for the cryptocurrency.

The increase in Bitcoin’s realized market cap and the growing share of Bitcoin held by long-term holders create a favorable environment for further price growth. As more long-term investors continue to accumulate, the potential for a bullish price rally becomes stronger. If these trends persist, Bitcoin could see a more sustained upward movement in the coming months.

Profit-Taking Risks

Despite the bullish outlook, there are risks that could derail the price rally. A surge in profit-taking could interrupt the current momentum, pushing Bitcoin’s price down below its key support level of $95,513. If this happens, Bitcoin could test the next support zone around $91,473. A temporary correction could be expected if profit-taking intensifies, but this doesn’t necessarily mean the market will shift to a full-blown downtrend.

Conclusion

Bitcoin’s realized market cap of $857 billion and the rising percentage of Bitcoin held by long-term investors suggest that the cryptocurrency remains in a strong position for further growth. While the price of Bitcoin is currently facing some challenges around the $100,000 mark, the reduction in selling pressure from long-term holders and continued accumulation of Bitcoin points to the possibility of further upward momentum.

However, traders and investors must remain cautious, as any sharp increase in profit-taking could trigger a short-term pullback in price. Despite this, Bitcoin’s long-term outlook remains optimistic, with the potential to surpass key resistance levels and make a sustained push toward $100,000 and beyond.