Bitcoin’s bullish run faces $69K resistance amid growing profit-taking concerns
Bitcoin’s price has surged back near its 2021 high of $69,000. Data reveals that 94% of Bitcoin holders are currently in profit. This raises the question: will the market see a wave of profit-taking at this key resistance level?
According to analysts, such a high percentage of Bitcoin in profit often signals a potential price pullback. Historically, when Bitcoin supply reaches this level of profitability, it has triggered significant sell-offs.
In late September, for instance, a similar situation led to an 8.7% drop in Bitcoin’s value, and in early 2024, another price peak was followed by a sharp 23% correction.
Despite these warning signs, some analysts remain optimistic about Bitcoin’s near-term prospects. Japanese trader Jusko Trader points to a “healthy pullback” in Bitcoin’s price as a sign of continued bullish momentum.
He notes that the $69,000 level represents a major liquidity zone, making it a strong resistance point.
However, if Bitcoin breaks through this zone, it could trigger over $1.6 billion in short-position liquidations, potentially driving the price higher.
Another factor that could influence Bitcoin’s next move is the growing inflows into U.S. spot Bitcoin exchange-traded funds (ETFs).
These funds have seen significant investment since October 11, with cumulative inflows reaching $21.2 billion as of October 22. This influx of capital may provide the boost needed for Bitcoin to push through the $69,000 resistance level.
