Bitcoin Eyes $100K, But Glassnode Foresees Potential Profit-Taking After Milestone

Investors may start to take profits as Bitcoin (BTC) gets closer to the noteworthy $100,000 milestone, which could lead to a market fall. After reaching this milestone, Glassnode’s co-founders, Jan Happel and Yann Allemann, also known on social media as “Negentropic,” cautioned their 63,200 followers that the cryptocurrency king might decline.

Potential for Profit-Taking Triggering a Dip

The Glassnode team notes that Bitcoin is currently trading just under $97,000, and hitting the six-figure mark could trigger significant sell-offs. They compare this scenario to previous instances like the $73,000 high in March and the $70,000 retest in May, where profit-taking was not as intense. If profit-taking indicators increase, the Bitcoin price could experience a correction.

“Bitcoin hits $97,000 just a step away from the six-figure milestone! But beware – $100,000 could trigger major profit-taking,” Glassnode warns. They also highlight that long-term holders, who typically exit during a bull run, have been selling smaller amounts this time around.

While long-term holders have been reducing their positions since Bitcoin began its climb from $60,000 in October, these sales have been more subdued than past market cycles. Glassnode points out that this is the largest selling activity by long-term holders during this particular price surge but emphasizes that it is much smaller than the pre-halving sales seen earlier this year.

“Since Bitcoin started climbing from $60,000 in October, long-term holders have been reducing their positions. This is the largest selling activity compared to other market participants during this run to new all-time highs. But don’t panic! These sales are much smaller than the pre-halving exits seen earlier this year,” the founders noted.