On-chain metrics indicate Bitcoin may face minimal resistance beyond the $100,000 mark, offering a potential window for continued upside momentum.
According to data shared by institutional DeFi solutions firm Sentora (formerly IntoTheBlock), the distribution of Bitcoin investors’ cost basis suggests that most supply purchased in recent months now sits in profit. This means that the typical supply-overhead resistance, which often emerges as price nears the cost basis of underwater investors, may be limited.
Resistance Levels Appear Thin Above Current Price
Sentora highlighted the data in a post on X, revealing how Bitcoin’s current price positioning affects potential sell pressure. A corresponding chart displayed investor cost basis clusters across various price levels, with dot sizes representing the proportion of BTC supply acquired at those levels.
The visual data showed that the largest concentration of buying activity occurred below current market prices, meaning those positions are now profitable. In contrast, price levels above Bitcoin’s current spot price—around $99,400—contain only a small fraction of the supply, indicating fewer holders who may look to sell at break-even points.
Less than 3% of Bitcoin’s total supply was purchased above current levels, suggesting limited historical resistance as BTC approaches and potentially surpasses $100,000.
Why Cost Basis Clusters Matter
Cost basis, or the price at which an investor bought their assets, is often viewed as a psychological trigger point. Investors who previously bought at higher levels and now see price recoveries may be inclined to sell once they break even, particularly if they’ve been holding at a loss for some time.
However, with minimal supply residing at those higher levels, Bitcoin may avoid large-scale profitless sell-offs as it pushes into new territory. This creates a clearer technical path for BTC, at least regarding on-chain supply dynamics.
A New Challenge: Profit-Taking
While break-even sellers may not pose a major obstacle, Sentora warns of a different kind of resistance—profit-taking. With the majority of Bitcoin holders now in profit, there’s a growing risk of a mass selloff from traders looking to lock in gains.
Whether the market can maintain momentum will depend on the strength of new buyer demand, which must be sufficient to absorb potential selling pressure from these profitable positions.
BTC Market Overview
At the time of writing, Bitcoin is trading at approximately $99,400, marking a weekly gain of more than 3%. As bulls eye the key psychological barrier at $100,000, market watchers will be focused on whether on-chain fundamentals can support a sustained breakout.
Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency markets are volatile and involve significant risk. Always do your research before making investment decisions.
