The major cryptocurrency Bitcoin is currently below the critical resistance level at $115,892 after two failed attempts in a recent session. Stagnant price actions suggest that a period of integration may be formed.
However, the on-chain indicators still flash signs of a strong bullish momentum, suggesting that stronger rallies remain on the horizon.
Bitcoin struggles in resistance, but fuel optimism for wallet growth and profitability
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BTC/USD’s one-day chart measurements highlight BTC’s struggles of crucially exceeding $115,892 in the last two trading sessions.
Interestingly, despite this short-term hesitation, data on the chain suggests that market strength is still being built.
According to GlassNode, the number of BTC addresses that held a non-zero balance rose to the height of that year. At the time of pressing, this is 54.37 million wallet addresses.
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A non-zero balance wallet refers to a Bitcoin address that holds at least a portion of the BTC, indicating active participation in the network.
The rise in the number of these wallets reflects a growing retail and institutional interest and the adoption of a deeper network, which could sustain a surge in BTC prices in the short term.
To further strengthen the bullish outlook, Cryptoquant data reveals that 93.6% of Bitcoin’s distribution supply is currently profitable.
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The new report explained that when pseudonymous crypto analyst Crypto is available, the long-term average for this metric is about 75%, with current levels significantly above normal.
At 93.6%, analysts argued that this trend points to momentum with strong optimism and momentum.
“The market is clearly bull mode. This may scare anyone who thinks it’s ‘everybody’s profitable, time to run’, but I think it’s positive. It lives on the excitement of the market,” Crypto said.
Over $115,892 you can unlock $122,000
Once on-chain activity is heated and profitability reaches levels, the BTC may be preparing for another climb as the gatherings continue before.
A critical break beyond the $115,892 resistance could trigger a rally towards $119,367. If the buy-side pressure gets strengthened here, BTC could extend its profits and expand the rally to $122,190.
However, as bearish domination increases, BTC could extend its lateral trend and plummet to another $111,961.
