Bitcoin (BTC) bulls may face significant resistance near the $99,900 mark, as on-chain data reveals signs of increased selling pressure.
After a recent rally pushing Bitcoin above $90,000, some market participants are speculating that the leading cryptocurrency could be on track to surpass its previous record of $109,000, set in January. However, the road to new highs may not be as smooth as it seems.
According to a recent analysis by Glassnode, several market groups may trigger increased selling activity around the $99,900 price point. One key factor is the behavior of long-term holders (LTHs), which Glassnode defines as wallets that have held Bitcoin for at least 155 days. Historically, these holders have tended to take profits at price levels that provide approximately 350% unrealized gains, making $99,900 a likely target for profit-taking.
“Historically, LTHs start distributing their coins more aggressively once their unrealized profits reach around 350%, which aligns with the $99.9K price level. As we approach this zone, we expect increased sell-side pressure, which will require strong demand to absorb it,” Glassnode stated in their analysis on X.
Another source of potential selling pressure comes from wallets that acquired Bitcoin earlier this year, particularly when the price was between $95,000 and $98,000. After enduring the price dip to $75,000 last month, these investors may be inclined to exit their positions, either to break even or lock in a small profit. This behavior is common among traders who are quick to take profits on winning positions but reluctant to cut losses on losing ones.
“Many coins were bought between $95K and $98K, so some holders may look to exit at breakeven. This, combined with the rising profits of long-term holders, creates a significant resistance zone,” Glassnode noted. “A clean breakout above this level could potentially open the door for price discovery above $100K.”
As Bitcoin approaches these key levels, all eyes will be on the market’s ability to absorb selling pressure and maintain upward momentum. If demand remains strong, Bitcoin may find a way through this resistance and continue its bullish trajectory. Otherwise, the $99,900 level could prove to be a tough barrier for bulls to overcome.
