- Bitcoin’s price fell by 6.33% in 7 days as profit margins shrank across the board
- Cryptocurrency must hold above $100k to restore market confidence
Over the past week, Bitcoin [BTC] has struggled to reclaim and hold its levels above $100k on the charts. This market weakness is a sign of growing market indifference, with sellers strategically entering the market to take profits or sell to avoid further losses. In fact, at the time of writing, BTC was trading below $100k for the 4th consecutive day – For the first time in 2025.
Thanks to these market conditions, many have been left talking. One such person is CryptoQuant’s Crazzy, with the analyst recently highlighting how important the aforementioned level is for the world’s largest cryptocurrency.
Why Bitcoin must hold above $100k
According to CryptoQuant, the $100k price level is currently more important than ever. Its significance arises from short-term holder’s need to become profitable.
Source: CryptoQuant
New investors holding BTC for less than a month are currently operating at a 3% loss. Also, those holding Bitcoin for less than 6 months have seen their profit margins shrink from 30% in November 2024 to 7% at press time.
Although the drop offers opportunities for new buyers to r-enter the market and those considering DCS, BTC needs to hold above $100k to restore market confidence.
If Bitcoin remains below $100k, investors will see more losses, resulting in reduced investor sentiment. Especially for STHs, leading to panic selling.
For BTC, $100k is not only a psychological level but it is key to avoiding capitulation as market confidence depends on it. Here, it’s worth noting that a failure to hold these levels would result in prolonged stagnation and even more losses in the short term.
Can it recover to reclaim these levels?
Although Bitcoin has struggled to reclaim higher resistance levels, the market is yet to reach the top. According to AMBCrypto’s analysis, for instance, Bitcoin is currently seeing a healthy retracement before the next leg up.
Source: Bitbo
Therefore, BTC is still in a position to register more gains on its price charts.
For example, Bitcoin’s long-term holder supply has seen a sustained rise lately. This seemed to imply that LTHs are not panic selling and might just continue to accumulate.
Source: CryptoQuant
This can be further evidenced by the fact that although the LTH SOPR declined, it has remained above 1 at 1.8.
With the LTH SOPR at these levels, it means that long-term holders’ profit taking is slowing down and it’s yet to turn to panic selling. This is a healthy correction within a bull market as LTH expects a less aggressive price hike in the short term.
Source: Cryptoquant
Additionally, we can see this reduced selling pressure among active participants in equal measures. This can be evidenced by reducing exchange inflows. In fact, exchange netflows returned to negative territory after turning positive over the past day. Netflows declined to -780.2, suggesting that more Bitcoin is leaving exchanges than entering – A sign of a shift in sentiment to bullish.
In conclusion, while long-term holders have not lost confidence, Bitcoin must avoid further losses. The prevailing market conditions show that LTHs are the ones supporting the market as short-term holders are at a loss or have low profits. Therefore, a trend reversal will strengthen LTHs conviction while restoring STHs confidence.
Simply put, Bitcoin will have to break out and reclaim $100k for a bullish outlook to hold.
