After the events of the last week, it is more a matter of “when” rather than “if” the price of Bitcoin will reach its historic six-figure mark. Cryptocurrency comment channels and waves have been largely occupied by the leading cryptocurrency, which had the potential to hit $100,000 over the past few weeks.
BTC’s six-digit value is not only an impressive milestone for the entire cryptocurrency industry, but also one that comes with “adverse” events like liquidations for tiny traders. Here’s a look at the “what’s next” chain if Bitcoin’s price goes above $100,000.
What’s next for the BTC price after $100,000?
In a recent report, blockchain analytics firm Glassnode common insight into the performance of the leading cryptocurrency on-chain since the start of its recent surge. While a price of $100,000 seems inevitable, the blockchain company expects Bitcoin’s price to lose some of its momentum once it exceeds the target.
One justification for this projection is the recent behavior of a group of investors called long-term holders (LTH). According to Glassnode, long-term holders are starting to offload their assets in order to make profits and may be waiting to sell more coins as the price action continues to augment.
Source: Glassnode/X
Based on data from the LTH Spending Binary Indicator, which tracks the intensity of selling pressure from long-term holders, these major investors are increasingly distributing their assets. This binary spend metric shows that the LTH balance has decreased in 11 of the last 15 days.
While demand from institutional investors, particularly through U.S. spot exchange funds (ETFs), has absorbed 90% of the selling pressure from long-term investors, Glassnode noted that spending pressure from this group of investors has begun to outpace net inflows from ETFs in recent days. This pattern was also noticed earlier, in February 2024.
According to Glassnode, if selling pressure continues to outpace ETF demand, it could result in short-term price volatility or lead to price consolidation. The chain company said:
However, as of November 13, LTH selling pressure began to outpace net ETF inflows, mirroring the pattern observed in delayed February 2024 when supply-demand imbalances led to increased market volatility and consolidation.
$1.89 billion will be liquidated if Bitcoin’s price exceeds this level
In a post from November 22 on X, prominent cryptocurrency analyst Ali Martinez it sounded Bitcoin bear warning. According to data from CoinGlass, it looks like a whopping $1.89 billion will be liquidated if Bitcoin’s price reaches $100,625.
Source: Ali_charts/X
At the time of writing, the main cryptocurrency is valued at $99,424, reflecting a 1.4% price augment over the last day. Data from CoinGecko shows that Bitcoin’s price has been trending much more impressively on a weekly basis, rising by almost 10% over the last seven days.
The price of Bitcoin on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
