In an astonishing turn of events, Bitcoin soared to a new all-time high of $90,243 yesterday, driven by a week of intense buying pressure. This recent surge has ignited excitement throughout the cryptocurrency market, with many enthusiasts speculating that Bitcoin’s journey to even greater heights is just beginning.
However, as Bitcoin approaches this significant milestone, a brief consolidation phase might occur before the next upward momentum takes hold. According to key data from Glassnode, a surprising trend has emerged: long-term holders are not exhibiting signs of extreme greed or aggressive profit-taking, even with the rapid price escalation.
Long-Term Holders Display Cautious Optimism
The measured optimism shown by long-term holders indicates that they view this rally as the beginning, rather than the pinnacle, of a larger bullish phase. Unlike previous highs characterized by frantic profit-taking, the current sentiment reflects a confident belief in Bitcoin’s potential for sustained growth.
Analysts are keeping a close watch to determine if Bitcoin can establish new support around the $90,000 level. As Bitcoin consolidates near this threshold, market sentiment suggests that the rally may have significant room to grow, particularly if long-term holders continue to maintain their positions.
The Advent of Bitcoin’s Bullish Phase
Bitcoin has entered its anticipated bullish phase following an extended eight-month period of sideways movement and selling pressure. The price has surged by 20% above its previous all-time high from March, entering uncharted territory. This breakout has fueled optimism within the market, with many anticipating that Bitcoin’s price will continue to rise as it ventures into new price discovery.
Data shared by Glassnode and crypto analyst Ali Martinez on X provide crucial insights into the current market sentiment. Despite Bitcoin’s impressive price movement, long-term holders are not yet exhibiting extreme greed, indicating that the market is still in the early stages of this bullish phase.
Understanding the NUPL Metric
The long-term holder Net Unrealized Profit/Loss (NUPL) metric, which measures the profitability of coins held by long-term investors, remains in the “greed” zone but has not yet reached the “extreme greed” levels seen in prior cycles. This suggests that while investors are confident and maintaining their positions, they are not yet overwhelmed by the euphoria that typically signals a market peak.
This data implies that major players, including institutional investors and long-term holders, remain optimistic about Bitcoin’s prospects in the coming weeks. The absence of extreme greed indicates potential for further growth, as the market has yet to reach the vitality levels that often precede significant corrections. As Bitcoin continues to reach new highs, this measured confidence could support a sustained upward trend.
Bitcoin’s Consolidation Below $90,000
Currently, Bitcoin is trading at $87,600 after reaching its new all-time high of $90,243. Following a week of aggressive buying pressure, the price appears to have found a local top for now, and it seems poised to enter a consolidation phase below the $90,000 mark. Market participants will likely monitor key levels during this phase to assess whether the uptrend can continue.
If Bitcoin manages to maintain its position above the $85,000 mark, a retest of this level is expected, potentially leading to higher levels if support holds. This would signal that the bullish momentum remains intact, indicating that Bitcoin is preparing for its next upward move.
However, if the price fails to sustain the $85,000 level, Bitcoin could experience a retracement to lower demand levels, possibly around the $82,000 mark. A dip below this threshold could indicate a deeper correction, with further downside testing support levels before buyers re-enter the market.
Monitoring Critical Levels for Future Moves
In the days ahead, the price action around these critical levels will help determine whether Bitcoin will break higher or take a temporary pause before the next rally. Investors must stay alert to the evolving price dynamics to make informed decisions.
