Bitcoin has shown remarkable resilience in recent days, avoiding falling below the key support level of $100,000 despite intense market volatility.
The cryptocurrency king’s ability to maintain its position despite pressure shows its underlying strength. What many perceive as a bearish phase is instead revealing strong structural support within the market.
Bitcoin is doing better than expected
Realized P&L, which measures net profitability for investors, supports this bullish interpretation. The 90-day simple moving average (SMA) is currently 9.1, reflecting a gradual cooling from its July peak. Still, profits remain more than double the levels recorded during the last two mid-cycle bears, when the P/L ratio fell to 3.4.
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This indicates that investors are not panicking and that the recent decline is primarily driven by mild profit-taking rather than capitulation. The sustained profitability of Bitcoin holders suggests that market participants are confident in its long-term prospects.
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On-chain data also highlights the role of Bitcoin whales in reinforcing this bullish momentum. These large investors are seizing opportunities to accumulate during moments of weakness. This week, after the price briefly reached $101,000, addresses holding between 10,000 and 100,000 BTC collectively purchased more than 300,000 BTC.
This wealth accumulation, worth nearly $32 billion, shows the high confidence of large holders. Their buying activity is fueling Bitcoin’s recovery, pushing it past the $105,000 milestone and reinforcing the possibility of an extended uptrend.
BTC price is recovering
At the time of writing, Bitcoin is trading at $106,148, comfortably above the $105,085 support level. The recent whale-driven rally has pushed BTC past its significant psychological resistance and provided investors with renewed optimism.
Considering improving sentiment and increasing institutional accumulation, Bitcoin could continue its rally towards $108,000 and perhaps retest $110,000 in the coming days. Sustained demand and a stable macro environment will further strengthen this momentum.
However, if short-term traders resume taking profits, Bitcoin price could fall below $105,000. This could lead BTC to retest support at $101,477, temporarily halting the bullish trajectory.
