Bitcoin Faces $100,000 Resistance, LTHs May Sell at 350% Profit

Crypto analytics firm Glassnode has issued a warning that Bitcoin (BTC) is approaching a significant resistance level, which could lead to increased sell-side pressure. According to the firm, long-term holders (LTHs) of Bitcoin, who have kept their coins inactive for at least 155 days, may start selling BTC near the $100,000 level. This prediction is based on the unrealized profit margin metric, which historically shows that lths begin distributing more aggressively around a 350% unrealized profit margin, aligning with a BTC price of approximately $99,900. As the market nears this level, increased sell-side pressure is likely, requiring strong demand to absorb it.

Glassnode also noted that LTHs have been accumulating Bitcoin since it broke into the $90,000 range late last month, suggesting it may soon hit the $99,000 level. The firm observed that spending remains light, signaling renewed confidence and a lack of interest in de-risking at current prices. This accumulation by LTHs indicates a bullish sentiment, as they are not showing signs of selling despite the potential for significant profits.

If Bitcoin is able to break through the $100,000 resistance level, Glassnode predicts that the flagship crypto asset will likely hit new all-time highs. The firm highlighted that a large cluster of coins was acquired between $95,000 and $98,000, meaning some BTC holders may exit at breakeven. This, combined with rising LTH profits, creates a key resistance zone. A clean breakout could open the path to price discovery above $100,000, potentially leading to further gains for Bitcoin.

At the time of writing, Bitcoin is trading at $96,675, remaining flat on the day. The current price is close to the resistance level identified by Glassnode, and the market's reaction to this level will be crucial in determining the future direction of Bitcoin's price. Investors and traders will be closely monitoring the situation to see if the increased sell-side pressure materializes or if strong demand absorbs the potential selling pressure.