The price of btc lhas recently risen, approaching the critical level of $108,000. While this recovery brings hope, the key resistance remains untested as support. What adds to the concerns is the noticeable shift in investor behavior, indicating market fatigue, which could pave the way for a price drop below $100,000.
In the previous market cycle (2020-2022), Bitcoin investors realized a total of about $550 billion in profits during multiple peaks, including two major waves. Moving to the current cycle, realized profits have already exceeded $650 billion, surpassing the total of the previous cycle. This indicates that, despite significant gains, the market may be entering a cooling phase. The latest data indicates that profit-taking has peaked, with the market now entering a cooling period after the third major wave of profit realization. Despite securing gains, the momentum driving Bitcoin's upward movement seems to be waning. As realized profitability decreases, investor sentiment shifts, leading to a reduced buying pressure.
[source](https://pixabay.com/photos/bitcoin-trading-community-9193579/)
The total Bitcoin transfer volume has also shown signs of cooling. The 7-day moving average for on-chain transfer volume has decreased by about 32%, down from a peak of $76 billion in late May to $52 billion over the past weekend. This decline aligns with the broader market cooling pattern, suggesting that Bitcoin's upward momentum may be losing strength. The slowdown in transfer volume reflects a general loss of activity across key Bitcoin metrics, reinforcing the idea that market participants are taking a cautious approach. With the market cooling down, the Bitcoin price may face downward pressure.
The Bitcoin price is currently $106,907, just below the resistance level of $108,000. For Bitcoin to continue its upward trend, it must convert the $108,000 level into support. This would pave the way for further gains, pushing Bitcoin towards the $110,000 level and possibly beyond. However, the current market sentiment remains fragile. Given the increasing signs of market fatigue and the cooling of key activity metrics, a decline is more likely in the near term. If demand does not recover, the Bitcoin price could drop below $105,000 and test the critical support level of $100,000. Any further loss of momentum could lead to a deeper decline.
Alternatively, if the Bitcoin price can maintain key support levels, the upward trend remains intact. Successfully reclaiming the $108,000 level as support would pave the way for Bitcoin to rise to $110,000. A breakthrough above this level could lead to a move towards the all-time high of $111,980, sustaining upward momentum and investor optimism.
