Bitcoin has broken out of a narrow price range and reached a new all-time high, generating waves of optimism among investors.
Breakthrough of Historical High
Bitcoin has finally broken out of the $100,000—$110,000 range and reached a new record of $122,000. This event has drawn the attention of many traders, who are now targeting the $136,000 level as the next crucial milestone.
Current Market Situation
According to Glassnode, the current state of the crypto market is different from before, as the spot price exceeds the 95th percentile of cost basis, situated around $107,400. This level often serves as a point where profit-taking by short-term holders begins, which appears to be happening already.
Future Prospects for Bitcoin
Currently, about 95% of the supply of short-term holders is in profit. These high profit-taking rates raise concerns about potential weakening demand. The Short-Term Holder Relative Unrealized Profit metric also indicates an overheated state, similar to what was observed before forming a peak.
Bitcoin continues to capture market attention, showing signs of both growth and necessary corrections. The interest from institutional investors also supports the bullish market, despite the actions of short-term traders.
