Since breaking this barrier last week, Bitcoin has been grappling with the $100,000 milestone, struggling to stay above this critical level. Despite price resistance, Bitcoin continues to show strength, signaling the potential for further growth in the near future. Investors and analysts are closely watching as the market looks for confirmation of its next move.

Data from CryptoQuant highlights an intriguing trend: modern investors are entering in force. The realized capitalization of coins held by newcomers (owned up to one month) has exceeded $343 billion, an astonishing 909% raise since the beginning of this bull cycle. This growth underscores the growing appetite for Bitcoin among modern market entrants, even as long-term holders realize significant profits.

These dynamics suggest well market rotation. Fresh investors absorb coins sold by long-term holders, providing a basis for continued demand. This behavior is typical during the overdue phase of a bull market, when retail and institutional interest peaks, fueling the final phase of the rally.

As Bitcoin consolidates below its all-time high, the focus remains on whether it can maintain a position above $100,000. The coming days will be crucial to determine whether the bull cycle will continue or whether a correction is on the horizon.

Bitcoin consolidation below 100 thousand dollars lasts

Since November 22, Bitcoin has been in a consolidation phase below the level of 100,000. dollars. Despite crossing this key psychological threshold, the price is struggling to maintain momentum and continue to rise. This price action is likely attributed to long-term bondholders achieving yields at this elevated level, which is causing the resistance. As these investors make significant profits, this leaves room for prices to fluctuate as modern buyers enter the market.

However, despite the pause in price action, there are signs that demand for Bitcoin remains mighty. CryptoQuant analyst Axel Adler recently released data on X revealing that the realized capitalization of coins held by modern investors (those holding up to one month) has exceeded $343 billion, reflecting an astonishing 909% raise since the beginning of the current bull cycle. This growth indicates a significant shift in the market where long-term holders are selling, but modern players, including corporations and potentially governments, are absorbing the supply.

This influx of modern capital suggests that demand is being driven by gigantic institutional players, with corporates and government entities likely leading the way. Growing interest from institutional buyers may be a key factor in maintaining the current upward trend in Bitcoin’s price. As long as modern players continue to absorb the supply, Bitcoin’s growth potential will remain intact, even if short-term price fluctuations persist.

Price Testing Liquidity up

Bitcoin is trading at $97,700 after failing to close above the $100,000 level five times out of six. dollars since it initially exceeded this level. Despite this struggle, the price seems poised to move higher and confirm a bullish breakout that could take Bitcoin into uncharted territory. Resistance at 100,000 dollars has created uncertainty, but the market still appears mighty and a successful daily close above this level would likely signal another stage of the bull market.

However, there is a risk of a correction if Bitcoin fails to stay above the $100,000 level in the coming days. If this level becomes a solid barrier again, BTC could experience a pullback and test lower levels, potentially leading to consolidation or a deeper pullback.

Price action over the next few days will be crucial in determining whether Bitcoin can maintain its bullish momentum or if the market shifts to a more cautious stance. Investors will need to watch for signs of support around key levels to gauge the strength of the current rally.

Featured image from Dall-E, chart from TradingView