Profit-Taking At $90K–$100K Cools Bitcoin As Block P/L Count Ratio Drops Sharply – Details

Bitcoin has faced significant selling pressure above the $100K mark, leaving the market leader struggling to regain momentum. After a stellar rally, BTC is now testing its ability to push past critical resistance, as traders and investors remain cautious about its short-term trajectory.

Top analyst Axel Adler recently shared insights on X, highlighting key metrics that suggest the market is entering a cooling phase. According to Adler, the Block P/L Count Ratio model—an indicator that tracks Profit and Loss within each block on the BTC network—shows a gradual decline in activity as profits are realized. Investors securing maximum gains at $90K–$100K levels have contributed to this shift, signaling a potential slowdown after the bullish frenzy.

The current market environment reflects a mix of optimism and hesitation as BTC consolidates near its psychological resistance. While the broader sentiment remains cautiously bullish, the cooling of market dynamics could extend the consolidation phase.

As Bitcoin struggles to overcome this critical barrier, the next few days will be pivotal in determining its direction. Whether BTC manages to push above $100K or settles into a more extended consolidation, its performance will likely set the tone for the broader crypto market.

Bitcoin Facing Risks 

Bitcoin’s struggle to reclaim the $100K mark has placed the market leader at a crossroads. While the price shows resilience, every day spent below this critical level raises questions about the strength of the bullish structure. To confirm a continued rally, BTC must break through and hold above $100K, signaling renewed confidence in the market.

Axel Adler recently shared critical insights on X, shedding light on the current market dynamics. Adler’s analysis focuses on the Block P/L Count Ratio model, a key metric that tracks Profit and Loss activity within each 10-minute Bitcoin block. The data reveals that after investors locked in maximum profits at $90K–$100K, the metric has dropped significantly, from levels above 100K to 159. This sharp decline suggests a cooling market as trading activity slows and participants reassess their positions.

Adler notes that the amount of time BTC will spend at these levels depends heavily on demand. If buying pressure remains stagnant, the market could struggle to sustain its current valuation, increasing the risk of a deeper correction. Conversely, a surge in demand could rapidly push BTC back above $100K, reigniting the bullish trend.

The coming days will be crucial in determining Bitcoin’s direction. A decisive reclaim of $100K would solidify its bullish outlook, while extended consolidation below this mark could test investor confidence. As traders monitor these developments, Bitcoin’s ability to navigate this pivotal phase will likely shape the broader crypto market’s trajectory.

Struggle Below Key Moving Average

Bitcoin is currently trading below the critical 4-hour 200 moving average at $98,208, a key level that must be reclaimed to confirm a bullish structure. This mark has become a significant resistance point, and the price appears to be setting a lower high within the main liquidity range between $108K and $92K. This signals potential risks for further downside if momentum does not shift soon.

The $98,208 level is pivotal for Bitcoin’s short-term trajectory. A failure to break above this moving average could indicate that bearish pressure remains dominant, potentially driving the price toward lower demand zones closer to $92K. Such a move would challenge the broader bullish narrative and test investor confidence.

For bulls to regain control, BTC must decisively break out above the $100K mark in the coming days. A successful move above this psychological and technical level would likely trigger a strong rally, attracting renewed buying interest and solidifying the bullish structure.

Featured image from Dall-E, chart from TradingView