Bitcoin's Realized Profit Hits 5-Month High…Will it Reach $100,000?

▲ Bitcoin (BTC) ©Dasol Ko

Despite Bitcoin's realized profit reaching a 5-month high during its surge past $80,000, it continues to maintain an upward trend, with discussions now turning to the possibility of reaching $100,000.

According to crypto media outlet Finbold on May 5 (local time), Bitcoin (BTC) recently saw its realized profit increase to $207.56 million, marking the largest surge within the last month. This indicates that investors actively engaged in profit-taking as Bitcoin re-surpassed $80,000 for the first time in three months.

Notably, the increase in realized profit was observed repeatedly throughout April and early May, indicating that sell-offs occurred whenever prices rose. Nevertheless, the fact that the price maintained an upward trend suggests that market buying demand is sufficiently absorbing the supply.

Santiment data analyzes that this trend could actually be a signal for the continuation of the upward trend. This is because, in a bull market, an increase in realized profit often signifies the influx of new buyers and the re-establishment of a price base, rather than simply upward fatigue. Indeed, it is evaluated that support is strengthening around the $80,000 mark as existing investors' sell-offs are absorbed by new investors.

Technical indicators also support the possibility of further upside. Analyst Ali Martinez pointed out that the weekly Moving Average Convergence Divergence (MACD) formed a golden cross on April 13. In the past, similar signals were followed by increases of 147%, 75%, and 35%, and in the current cycle, an increase of approximately 15% has already occurred.

Currently, Bitcoin is trading at approximately $80,711, testing the short-term resistance level of the 200-day moving average at around $83,000. If this level is breached, an upward path to $89,000 and $94,000 could open up, with the psychological resistance of $100,000 then emerging as the next potential target.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*