Bitcoin Sees $66B in Profit-Taking from Recent Buyers, Yet New Demand Stabilizes Price | Bitcoinist.com

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Bitcoin finds itself at a pivotal moment once again after managing to reclaim significant levels above the $105,000 threshold. Over the weekend, BTC experienced extreme fluctuations due to the U.S. military’s airstrike on Iran’s nuclear sites, inciting panic in global markets. However, the subsequent announcement of a ceasefire between Israel and Iran provided relief, leading to a notable recovery in Bitcoin’s price.

This week is projected to be crucial in shaping Bitcoin’s short-term direction. While bulls have regained temporary control, considerable uncertainty lingers due to ongoing global tensions and economic challenges. Insights from on-chain data provided by CryptoQuant highlight current market dynamics; the Realized Cap of the 0–1 month age cohort has risen by $66 billion since mid-April.

Despite facing selling pressures, Bitcoin has remained within a tight range, indicating that demand is sufficiently strong to absorb recent profits. If bulls can capitalize on the current momentum, Bitcoin may be preparing for its next major move. The focus is now on whether BTC can surpass $109K to revisit all-time highs.

Bitcoin Solidifies as Market Adjusts to Profit-Taking

Bitcoin experienced pronounced volatility recently, plunging to $98,000 before recovering above the $105,000 mark. This rebound comes amidst rising concerns about a potential double top formation, which has contributed to bearish sentiment among traders. Despite this psychological pressure, on-chain data continues to indicate a robust market structure without significant signs of an imminent downturn.

Renowned analyst Axel Adler notes that since April 13, the Realized Cap of the 0–1 month age cohort has surged by $66 billion. This metric reflects substantial profit-taking by short-term holders who entered the market during the rally. Approximately 720,000 BTC have been sold in this timeframe, increasing supply pressure in the market.

Bitcoin Analysis of Investor Behavior | Source: Axel Adler on X

What stands out, however, is Bitcoin’s ability to manage this selling volume without significant collapse. Prices have largely stayed within a tight consolidation range, signaling that buyers are engaged enough to counterbalance the selling pressure. Such accumulation is often indicative of underlying strength, even amidst uncertain price action.

The broader market is now keenly observing whether Bitcoin can sustain momentum above $105K and aim for resistance levels between $109K and $112K. Until then, consolidation appears to be the prevailing trend, potentially signaling the calm before significant movement.

BTC Challenges Resistance After Reclaiming $105K

On Bitcoin’s 4-hour chart, a strong recovery from the $98,000 lows is evident, with prices currently around $105,300. This movement follows a notable increase in buying momentum that propelled BTC above the key $103,600 support-turned-resistance level. The reclaiming of this level, along with a decisive close above the 50 and 100-period moving averages, suggests renewed bullish interest.

BTC testing key resistance | Source: BTCUSDT chart on TradingView

Volume has notably increased during this latest bounce, signaling real market engagement rather than just a brief short squeeze. BTC is now near a significant confluence zone between $105,500 and $106,000, where the 200-period moving average intersects with a recent horizontal resistance zone. This area has served as a rejection point several times in June, and the price action here will determine whether BTC can target the next resistance at $109,300.

Until BTC securely breaches $106K with substantial volume, the broader market structure remains neutral to slightly bullish. The higher low formed during the bounce from $98K offers some reassurance to bulls, but true confirmation will only arise if prices consolidate above the 200-MA and strive toward the May highs.

Featured image from Dall-E, chart from TradingView

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