Bitcoin (BTC) recently hit a new all-time high (ATH) of $93,477, with the leading digital asset inching closer to the much-anticipated $100,000 target. Notably, profit-taking has been relatively minimal amid the ongoing price rally, giving hope that BTC has further room to rise.
Bitcoin sees less profit taking in current cycle
According to a recent report from Glassnode, the current BTC price momentum is mainly driven by strong spot demand and rising institutional interest. In particular, the victory of Republican U.S. presidential candidate Donald Trump has added optimism to the digital asset industry.
The report highlights that more than 95% of Bitcoin’s supply is currently in profit. However, despite the high percentage of profitable holders, profit-taking has remained relatively muted during this cycle.
Historically, realized profits per month during previous Bitcoin ATH cycles were typically between $30 billion and $50 billion. The current price discovery phase has seen realized profits of approximately $20.4 billion.
This relatively low level of profit-taking during the current BTC ATH cycle suggests that BTC prices have further room to rise, potentially reaching the $100,000 milestone before demand weakens.
The chart below shows the cost basis of new BTC investors and the statistical upper and lower limits. According to the report, during the ATH phase, as new investors enter the market at higher price points, the price of BTC repeatedly tests the upper limit.
As can be seen in the above chart, BTC’s current spot price is $91,199, just below its upper limit of $94,900. Tracking price action between these ranges can show when market prices may be high enough to force existing holders to sell their holdings.
Excess leverage must be cleared before $100,000 BTC
Although BTC is currently trading less than 10% away from the $100,000 level, industry experts believe that excessive leverage must be eliminated before the top digital asset attempts to reach the six-figure mark.
Data from Coinglass shows that more than $718 million worth of crypto contracts were liquidated in the past 24 hours, affecting 202,074 traders.
Notably, the percentage of contracts liquidated was fairly even for longs and shorts – 49.93% and 50.07%, respectively – suggesting that despite strong bullish sentiment, there is no clear trading advantage.
Some industry leaders remain optimistic about BTC’s future price trend. In October, the CEO of BTC mining company CleanSpark said the top digital asset could peak at $200,000 within the next 18 months.
Similarly, BitMEX co-founder Arthur Hayes recently predicted that BTC could reach $1 million under the Trump administration. At press time, BTC is trading at $91,199, up 3.9% in the past 24 hours.
