Bitcoin Realized Profit Hits 5-Month High…Will it reach $100,000?

▲ Bitcoin (BTC) ©Godasol

Even as Bitcoin's realized profit hit a 5-month high during its surge past $80,000, it continues to maintain an upward trend, with the possibility of reaching $100,000 being discussed.

According to Finbold, a cryptocurrency specialized media outlet, on May 5 (local time), Bitcoin (BTC)'s realized profit recently increased to $207.56 million, marking the largest surge within the last month. This indicates that investors actively engaged in profit-taking as Bitcoin re-surpassed $80,000 for the first time in three months.

Notably, an increase in realized profit was repeatedly observed throughout April and early May, signifying that selling pressure emerged with each price increase. Despite this, the fact that the price maintained an upward trend suggests that market buying demand is sufficiently absorbing the supply.

Santiment data analyzes that this trend could, in fact, be a signal for the continuation of the upward trend. This is because, in a bull market, an increase in realized profit often signifies the influx of new buyers and the re-formation of a price base, rather than market fatigue. Indeed, it is assessed that support around the $80,000 mark is strengthening as existing investors' selling volume is absorbed by new investors.

Technical indicators also support the possibility of further upside. Analyst Ali Martinez pointed out that the weekly Moving Average Convergence Divergence (MACD) formed a golden cross on April 13. In the past, similar signals were followed by increases of 147%, 75%, and 35%, and in the current cycle, an increase of approximately 15% has already occurred.

Currently, Bitcoin is trading around $80,711 and is testing the short-term resistance level of the 200-day moving average at approximately $83,000. If this level is breached, an upward path to $89,000 and $94,000 could open up, and subsequently, the psychological resistance of $100,000 is likely to emerge as the next target.

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