Bitcoin Approaches $100K: On-Chain Data Signals Limited Resistance and Strong Support

As Bitcoin once again nears the elusive mark of $100,000, on-chain data is providing some fascinating new perspectives on the current market dynamic. Even with the price surge, the overall resistance levels for Bitcoin might not be as tough to topple as some experts had expected, meaning the cryptocurrency could clear these hurdles in the near future with the same ease as it did its last few rising price points. The price of Bitcoin is around $94,719, a strong support level where a substantial amount of $BTC has been accumulated. This floor seems to be solid, a sort of base the price can bounce off of as it heads toward the $100K level. However, there are obstacles to overcome on the way up, with resistance levels lying between here and the next major milestone price point at around $101,673, where once again a significant amount of Bitcoin has been amassed. Sell-Side Pressure and Resistance: On-Chain Indicators Show Limited Downside Risk One of the most critical insights that on-chain data provides is understanding the selling pressure and potential resistance in the market. When Bitcoin gets close to crucial price points, the sell-side activity tends to ramp up, often coming from holders with underperforming assets. On-chain analytics from places like Santiment reveal there’s still some serious sell-side pressure judging by the red bubbles they see on the charts. These bubbles represent volume coming from what we would call “distressed” holders. To be more precise, these sellers aren’t really distressed; they are far better positioned than they were a year ago. Bitcoin is once again approaching the $100K threshold, and on-chain data suggests potential resistance may be limited. The red bubbles highlight volume that’s still in an unrealized loss; cohorts more likely to sell to break even or minimize further downside. This group… pic.twitter.com/yAhdHXp6IR — Sentora (previously IntoTheBlock) (@SentoraHQ) May 8, 2025 This group of likely sellers is very limited in size compared to the total available supply of Bitcoin. That essentially means that the sell-side pressure is more contained than in previous episodes where a larger number of holders were underwater. If we take together the profit-taking rendering the price action of Bitcoin for the past few weeks and the fact that profit-taking usually happens when a dire resistance level is being approached, it seems like sellers might still be at a very strategic advantage. Again, this isn’t exactly a positive delisting catalyst, but it is some indication that, regardless of the price action in the short term, buyers on the Bitcoin network are better off for now. Conversely, the levels where accumulation has occurred are apparent in the @#@substantial accumulation zones. Bitcoin is mirroring key support at $94,719, where 195,000 BTC were amassed over a short period of time. It is likely that these holders, who we term ‘believers,’ have strong incentives to defend this level. As a result, this zone becomes a good candidate to consider absence of any formation that signals a breakdown into lower levels. The path to $100,000 and up is not clear of roadblocks. A key obstacle lies just in front of us, at $101,673, where 81,910 BTC have been gathered. This is a much more prominent and wider resistance level than even the next one, at $111,732, which has also accumulated significant buying interest. #Bitcoin has established a strong support floor at $94,719, where 195,320 $BTC were accumulated. On the upside, a key resistance wall stands at $101,673, with 81,910 #BTC accumulated at that level. pic.twitter.com/PRFCKAeDFY — Ali (@ali_charts) May 8, 2025 Needless to say, if Bitcoin does head toward $100,000, much less if it surpasses that, it will have to deal with these two obvious pockets of profit-taking for traders who have been long Bitcoin. Surely, such trading dynamics could induce a consolidation at best and a retracement at worst. Whale Activity and Spot ETF Inflows Indicate Confidence in Bitcoin’s Price Surge As Bitcoin’s price keeps climbing, there has been considerable movement from Bitcoin’s big holders. On-chain data shows that these big players have been taking the opportunity to cash out a fair amount of their holdings. Santiment’s data this week highlighted that these large Bitcoin holders (i.e., the whales) sold over 60,000 BTC in recent days. This, according to Santiment, is further evidence that these big investors are taking advantage of the rising price to lock in some of their profits. Whales capitalized on the recent price surge, booking profits by selling over 60,000 #Bitcoin $BTC , shows on-chain data from @santimentfeed ! pic.twitter.com/Ilmw0zXQHx — Ali (@ali_charts) May 7, 2025 Even so, the total trend is still very much in the bullish camp, with growing institutional confidence in Bitcoin as an asset; this confidence seems to be underpinning the inflow of capital into Bitcoin-focused spot exchange-traded funds (ETFs). On May 7, the Bitcoin ETF had a net inflow of $142 million—there were no outflows from any of the 12 ETFs that track Bitcoin. My take is that this signals a pretty robust institutional demand for Bitcoin and further reinforces the optimism under which its price might be moving. On May 7, Bitcoin spot ETFs saw a total net inflow of $142 million, with none of the twelve ETFs recording net outflows. In contrast, Ethereum spot ETFs experienced a total net outflow of $21.77 million, with none of the nine ETFs registering net inflows. https://t.co/Hj2Gs49bWa — Wu Blockchain (@WuBlockchain) May 8, 2025 The Road Ahead: Potential for Further Growth and Continued Volatility The current price action of Bitcoin shows that interest in the cryptocurrency market is once again escalating, with not only institutional players maintaining their interest but also long-term holders remaining true to their positions. The next few weeks could see Bitcoin testing some key price points, with a solid support level at $94,719 and resistance looming at $101,673. Volatility is a constant in the world of cryptocurrency, and investors need to stay alert to the possibility of not just rapid price increases but also swift pullbacks. That said, relatively low sell-side pressure and strong accumulation might just mean that Bitcoin is ready to break through its resistance levels and establish a new record high. Of course, there are a lot of different ways to play this scenario. Spot ETFs have been receiving decent inflows, and whales are certainly still playing a large role in price action. Those are two pretty important aspects for a healthy Bitcoin market. But, as usual, it’s mainly a question of the price itself resolving at critical levels across time frames. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !

Source: NullTx