Bitcoin prices have risen above $105,000 after a recent sharp drop, but the key $110,000 level remains a significant resistance zone.
The market shows a mixed signal, and the underlying on-chain metrics suggest strength, but there is risk when there are a large number of short-term holders of profits.
On-chain metrics show both strength and risk
Market metrics show mixed signals, according to analysts. The MVRV Z score helps to measure whether Bitcoin is overrated or underrated, but is currently +0.6. This suggests buying strength in the market without any signs of overheating.
Source: Axel
Meanwhile, 83% of short-term Bitcoin holders are still profitable. “The market has a bullish trend with moderate excess levels and strong interest from short-term holders,” the analyst wrote. However, he warned that if so many short-term holders start selling, there is a high risk of about $110,000 if people start selling for profit.
Bitcoin is currently stuck in range
Between June 9th and 11th, BTC was about to rise above $110,000. But it failed. For now, Bitcoin remains in the lateral range between $104,000 and $110,000. According to analysts, pullbacks from current levels could be temporary fixes within a larger uptrend.
Source: TradingView
Bitcoin is probably at the final stage of this bull cycle, but there is still room for even more price increases. Some models suggest that Bitcoin could reach $130,000 in this cycle. But before that happens, the market may see short dips, especially around the resistance area.
Source: TradingView
At the moment, the key levels of Bitcoin monitoring are $108,822 and $110,550 resistance, while the support is $106,220 and $102,780. If the price exceeds resistance, you could open the door for a move towards $113,000. Meanwhile, if Bitcoin falls below support, it could potentially return to the $92,800-99,200 range that analysts have marked as a possible pullback zone.
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