Crunch Time For Bitcoin: Market Top Or Another Monster Rally Ahead?

Bitcoin BTC/USD stands at a crossroads, with the cryptocurrency community wondering whether a potential ‘top’ may be approaching or if the apex crypto is gearing up for another rally.

What Happened: In a detailed thread on X on Thursday, crypto chart analyst Ali Martinez highlighted growing selling pressure from miners and long-term holders, noting that over $3 billion in realized profits were recorded in December 2024, while 20,000 BTC (worth $2 billion) was sold by miners in mid-January.

Historically, Bitcoin market tops have coincided with sharp spikes in realized profits.

Additionally, long-term holders have offloaded 75,000 BTC in the past week, contributing to an increase in circulating supply.

Another concern is the decline in capital inflows and network activity.

Since Dec. 10, capital inflows have dropped 63.3%, while network activity has fallen to its lowest level since November 2024.

On the technical side, Bitcoin was rejected at $109,400.

If BTC fails to reclaim this level, the next critical support zones to watch are $97,877 and $91,700.

Losing these levels could jeopardize the bull market, with a potential drop to $74,000.

Despite these bearish indicators, several models suggest significant upside remains.

The Mayer Multiple model targets $182,000, while a cup-and-handle breakout pattern points to $276,400.

Additionally, historical halving cycles indicate that Bitcoin's peak could occur between May and October 2025.

Also Read: Cathie Wood: ‘Bitcoin Is A Completely Different Animal,’ Regulations Are Necessary

Why It Matters: Currently, Bitcoin has reclaimed the $105,000 level, inching closer to its all-time high of $109,114, reached on Jan. 20.

In the past day, large transaction volume surged 27.9%, while daily active addresses increased 1.3%.

Over the past week, BTC has gained 12%, with 100% of holders now in profit.

With key support and resistance levels in focus, the next few weeks could be crucial in determining Bitcoin's trajectory.

Read Next:

• Bitcoin To Hit Up To $130,000 In The Next Weeks: Standard Chartered

Image created using artificial intelligence with Midjourney.