Bitcoin has seen unpredictable and volatile activity recently, with price action testing both psychological and technical boundaries. The cryptocurrency failed to break above the coveted $100,000 mark while showing resilience by holding firmly above the $90,000 level. This tight range has left traders and investors on edge, watching closely for a decisive move.

Amid this volatility, the broader crypto market is experiencing unprecedented demand, signaling a bullish outlook that could keep the “BTC party” alive in the coming months.

However, challenges remain, as key data from CryptoQuant indicates elevated risks of coin sales by current holders. This suggests potential headwinds, even as demand drives the market forward.

As Bitcoin consolidates, the market appears poised for its next major move. Whether BTC can break above $100K or face a deeper retracement below $90K will depend on how these dynamics play out. The coming weeks will be critical as participants navigate this volatile phase and assess BTC’s capacity to lead the market to new heights.

 Bitcoin Showing Selling Signals: What’s Different This Time?

Bitcoin has been on an impressive upward trajectory since November 5, surging by 50% as it approached key psychological levels, including the $100K mark. However, after reaching this monumental rally, BTC retraced over 8%, testing critical demand levels. Despite this pullback, the price remains exceptionally strong, supported by a solid base of new market participants.

According to CryptoQuant analyst Axel Adler, while there is a high risk of coin sales by holders—particularly those in the market for the long haul—the dynamics are different compared to similar situations in March.

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Author: Sebastian Villafuerte