Bitcoin reaches a historic take profit threshold, raising new concerns about the price.

Bitcoin, the cryptocurrency known for its extreme volatility, has recently experienced a period of less volatility. However, despite maintaining a stable price range, there are some signs that the future of this currency may face significant challenges. Investor behavior patterns and historical indicators suggest that, although Bitcoin currently appears relatively stable, it may soon encounter strong fluctuations, potentially leading to a significant price adjustment in the near future.

Bitcoin faces selling pressure

Currently, the Bitcoin market is dominated by strong optimism from investors. Unrealized profits have risen beyond the (SD)+2 standard deviation, a clear signal that Bitcoin is entering a phase of euphoria. According to historical patterns, when unrealized profits cross this threshold, the leading cryptocurrency will experience a short-term bull run. However, it is often followed by strong corrections when investors start to take profits.

Unrealized profits exceeding the +2 SD threshold are a typical sign of excitement in the market. Investors who bought at lower price levels will tend to sell to lock in profits, thereby creating a wave of profit-taking and putting selling pressure on the price of Bitcoin.

! Bitcoin's Relative Unrealized Returns | Source: GlassnodeBitcoin's macro momentum is now showing clear signs of profit-taking. Within the past 48 hours, the actual profits of investors have increased sharply, surpassing $500 million per hour, appearing three times in a row. This suggests that large investors are starting to withdraw money from the market as Bitcoin's growth slows down. When expectations of a sharp increase are not met, these key investors tend to protect their profits.

The strong increase in actual profits is creating potential selling pressure, and if this trend continues, it could put Bitcoin's price at risk of a correction. If the profit-taking action increases significantly, a price adjustment may occur, and even a deeper price drop.

As real profits continue to rise, the Bitcoin market is facing a potential risk: selling pressure that could push the price lower. If investors continue to withdraw profits, or if signals from the market show that the growth momentum is no longer strong, the Bitcoin price may face a sharp correction. The more market participants make profit-taking, the greater the pressure on the value of this cryptocurrency.

The actual profit is adjusted according to the entity of Bitcoin | Source: Glassnode## BTC price needs to break the barrier

Currently, the price of Bitcoin is fluctuating around 105,884 USD, holding above the important support level of 105,000 USD. However, this cryptocurrency is facing strong resistance at 106,265 USD. Nevertheless, the RSI remains above the neutral level of 50.0, indicating that the upward momentum has not been broken, and Bitcoin still has a chance to surpass this resistance level.

With the RSI above 50, Bitcoin is maintaining a positive signal, indicating the potential to break the barrier of 106,265 USD. If this happens, Bitcoin could continue its upward momentum and aim for the 108,000 USD level, depending on the overall market developments. Overcoming this resistance level will open up opportunities for Bitcoin to conquer higher price levels, driving strong upward momentum.

The level of 108,000 USD will be a crucial milestone for Bitcoin to affirm a sustainable growth trend and continue to reach record price levels. Once the price surpasses this threshold, the likelihood of Bitcoin achieving new price milestones will become clearer, while also further strengthening investors' confidence in the long-term upward trend.

BTC price chart 1 day | Source: TradingViewHowever, the market is not always favorable. If market sentiment turns negative and profit-taking activities increase, Bitcoin may face a correction. If the price drops below the support level of 105,000 USD, it could quickly plunge to 102,734 USD or even lower, temporarily delaying the bullish outlook.

In this case, a sharp drop below 105,000 USD will undermine optimism and lead to a wave of sell-offs, putting additional pressure on the price of Bitcoin. This scenario will create strong price declines, weaken investor confidence, and push the price of Bitcoin lower.

Bitcoin is currently in a "tightrope" situation, facing both the possibility of breaking resistance and moving towards new highs, as well as the risk of facing a strong correction if profit-taking increases. Investors need to closely monitor market developments, especially the support level of 105,000 USD and resistance level of 106,265 USD, to make appropriate investment decisions.

Taylor