In light of the occurrences of the previous week, it is increasingly about “when” rather than “if” the Bitcoin price will reach a remarkable six-figure number. The crypto analysis channels and discussions have predominantly focused on the leading cryptocurrency possibly achieving $100,000 over the past few weeks.
A six-figure price tag for BTC is not merely an astounding milestone for the whole crypto sector but also one that accompanies “unpleasant” events such as liquidations for short sellers. Below is an on-chain analysis of “what lies ahead” if the Bitcoin price surpasses $100,000.
What Comes Next For BTC’s Price After $100,000?
In a recent analysis, the blockchain analytics company Glassnode provided an overview of the on-chain activity of the leading cryptocurrency since it commenced its current upward movement. Although the $100,000 price level seems unavoidable, the blockchain firm anticipates that Bitcoin’s price may lose some of its momentum after achieving this target.
One of the reasons for this outlook stems from the recent actions of a group of investors identified as Long-term holders (LTH). As per Glassnode, these long-term holders are starting to sell their holdings for profit and may be poised to liquidate additional coins as the price movement remains strong.
Source: Glassnode/X
According to data from the LTH Spending Binary Indicator, which measures the strength of the sell-side pressure from long-term holders, these significant investors have been progressively distributing their assets. This Spending Binary metric indicates that the LTH balance has decreased on 11 of the last 15 days.
While the interest from institutional investors, particularly through US spot exchange-traded funds (ETFs), has absorbed 90% of the sell-side pressure from long-term holders, Glassnode observed that the selling pressure from this group has begun to exceed ETF net inflows in recent days. This trend was also noted earlier in February 2024.
According to Glassnode, should the sell-side pressure continue to outweigh ETF demand, it could lead to short-term price fluctuations or result in price stabilization. The on-chain firm stated:
However, since November 13, the sell-side pressure from LTH has started to surpass ETF net inflows, mirroring a trend seen in late February 2024, where the disparity between supply and demand resulted in heightened market volatility and consolidation.
$1.89 Billion To Be Liquidated If Bitcoin Price Surpasses This Threshold
In a November 22 post on X, noted crypto analyst Ali Martinez issued a cautionary note to the Bitcoin bears. Based on data from CoinGlass, an enormous $1.89 billion is poised for liquidation if the Bitcoin price reaches $100,625.
Source: Ali_charts/X
At the time of this writing, the leading cryptocurrency is priced at $99,424, marking a 1.4% increase in the last day. Information from CoinGecko indicates that Bitcoin’s price has seen a significantly stronger performance over the weekly period, climbing nearly 10% in the past seven days.
The Bitcoin price on the daily chart | Source: BTCUSDT chart on TradingView
Image sourced from iStock, chart from TradingView
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