Bitcoin has resumed a gradual ascent following a recent consolidation phase, momentarily surpassing the $106,000 threshold earlier today. As of now, the cryptocurrency is trading at $105,383, marking a 0.8% increase within the last 24 hours. Although this upward movement has not triggered a significant breakout, analysts are closely monitoring on-chain and market structure indicators that indicate a cautiously balanced market environment.
According to CryptoQuant analyst Darkfost, the current market lacks extreme signs of profit-taking or panic. In his recent analysis, he noted that realized profits based on a seven-day moving average remain below $1 billion, which aligns with figures observed during the market correction in late 2024 and is considerably lower than peaks recorded in early 2025. Darkfost suggests that the existing profit levels indicate that the market is not experiencing pressure from large-scale investor sell-offs, which supports the ongoing consolidation trend.
In the same report, Darkfost highlighted that a decline in demand may be hindering further upward momentum. By examining the ratio of new supply to the supply that has remained inactive for over a year, the study found that while demand is still positive, it has been weakening since Bitcoin’s local high in May. This indicates that although the market is managing to absorb existing selling pressure, fresh buying interest is insufficient to spark a new rally, leading to a temporary equilibrium where both buyers and sellers are relatively inactive.
In a similar vein, another CryptoQuant analyst, BorisVest, analyzed Binance order flow and position data, reinforcing the notion of a tightly contested market. He pointed out that Bitcoin has been trading within a range of $100,000 to $110,000 for nearly a month. Within this band, both long and short positions have been accumulating, and traders are closely observing the extremes of this range. BorisVest stated that any breakout above $110,000 or drop below $100,000 could trigger the next significant price movement, as this price range has become a battleground for both bullish and bearish traders.
BorisVest also noted an increase in short positions, suggesting that many market participants anticipate a downward correction. However, he cautioned that when short positions dominate, the likelihood of a sudden price reversal, known as a short squeeze, becomes more pronounced. This behavior aligns with recent funding rate trends, which indicate a relatively balanced distribution of long and short positions.
