Bitcoin price is currently at a critical phase as it nears record highs, with on-chain activity suggesting a potential correction. The recent surge in price has seen Bitcoin reach a new peak of $94,220, marking the third consecutive day of setting new records. This bullish momentum is driven by macroeconomic uncertainty and heightened volatility in traditional markets, as investors move capital from risk-weighted equity sectors into Bitcoin and other crypto products as a hedge asset.
Furthermore, Bitcoin ETFs have seen the highest net inflow since their inception, indicating rising institutional demand amidst growing macroeconomic concerns and trade policy risks. However, on-chain data reveals a more nuanced picture, as Bitcoin’s Age Consumed metric spiked to 12 million BTC, signaling intense profit-taking from long-term holders. This movement of previously dormant coins could potentially lead to a local top or significant pullbacks in the near term, dampening bullish momentum despite positive macro and institutional trends.
As Bitcoin price approaches the $100,000 psychological barrier, technical indicators suggest potential resistance near the $94,000-$107,000 range. The weekly chart shows BTC tapping the upper Bollinger Band, with resistance levels at the $107,383 key ceiling. Mixed signals from momentum indicators such as the Relative Strength Index indicate a fragile momentum, raising the possibility of a bull trap if price fails to decisively close above $94,000. Without strong follow-through, profit-taking could trigger a reversal towards lower support levels.
In summary, while Bitcoin price forecasts remain positive due to record ETF inflows and institutional demand, technical resistance and profit-taking from long-term holders pose potential challenges for further gains. Investors should exercise caution and monitor key support and resistance levels, particularly as Bitcoin approaches the $100,000 milestone. The Age Consumed metric and on-chain data provide valuable insights into potential market trends, highlighting the importance of a balanced approach to investing in volatile markets like cryptocurrencies.
