Bitcoin Rally Could Keep Going Up to $130,000 Before Interest Starts to Slow Down
Bitcoin Could Reach $130,000 Before Hitting Resistance, Says Glassnode
According to a report from Glassnode on July 16, Bitcoin (BTC) has room to rise up to $130,000 before hitting areas where buying interest usually weakens.
Bitcoin Hits New Highs
Bitcoin recently broke out of its previous price range of $100,000 to $110,000 and reached a new high around $122,000. In doing so, it moved past important price levels where many investors had previously bought, such as in the $93,000–$97,000 and $104,000–$110,000 zones.
Now that Bitcoin is above those zones, those past buyers may help support the price if it starts to fall. Traders will watch these levels closely to see if buyers step in again.
Strong Buying Below Current Price
Glassnode looked at Bitcoin’s buying activity using a heatmap and found that many people bought Bitcoin in the now-cleared lower price zones. When Bitcoin rises above these zones, those levels often become “support,” as previous buyers try to protect their entry price.
If the price drops back into the $104,000–$110,000 range, analysts will watch for strong buying to return.
Most Bitcoin Holders Are in Profit
The report also said that most Bitcoin in circulation is now held at a profit. The average cost basis of investors is around $107,400, while the price recently hit $122,600.
When many investors are in profit like this, some tend to sell to lock in gains. That can lead to price pullbacks if it happens at a large scale.
Bitcoin briefly fell to around $115,900 as some investors sold once the price went far above the average cost of short-term holders.
Next Resistance and Risk of Demand Cooling
Glassnode believes the next resistance level could be around $136,000. Many traders also see $130,000 as an important psychological level.
However, there are signs that Bitcoin’s rally may be overheating. Right now, 95% of short-term holders are in profit—much higher than the long-term average of 88%. Historically, when this number gets too high, it often signals that buying demand may soon slow down.
