Profit-Takers Loom as Bitcoin Tests $110K Ceiling

Bitcoin’s price has climbed back above $105,000 after a recent sharp drop, but the key $110,000 level remains a critical resistance zone.

The market is showing mixed signals, with underlying on-chain metrics suggesting strength, while a high number of short-term holders in profit poses a risk.

On-Chain Metrics Show Both Strength and Risk

According to an analyst, market indicators show mixed signals. The MVRV Z-score, which helps measure if Bitcoin is overvalued or undervalued, currently stands at +0.6. This suggests buying strength in the market without signs of overheating.

Meanwhile, 83% of short-term Bitcoin holders are still in profit. “The market remains in a bullish trend with moderate overbought levels and strong interest from short-term holders,” the analyst wrote. But he warned that with so many short-term holders in profit, there’s a higher risk of a price dip around $110K if people begin selling.

Bitcoin Is Currently Stuck in a Range

Between June 9 and 11, BTC tried to rise above the $110k mark. However, it failed. For now, Bitcoin remains in a sideways range between $104,000 and $110,000. According to an analyst any pullback from current levels would likely be a temporary correction within a larger uptrend.

Source: TradingView

While Bitcoin is possibly in the final stages of this bull cycle, there’s still room for further price increases. Some models suggest Bitcoin could reach as high as $130,000 in this cycle. But before that happens, the market may see short dips, especially around resistance areas.

Source: TradingView

At the moment, key levels to watch for Bitcoin are resistance at $108,822 and $110,550, while support sits at $106,220 and $102,780. If the price breaks above resistance, it could open the door for a move toward $113,000. On the other hand, if Bitcoin drops below support, it may slide back into the $92,800 to $99,200 range, which the analyst has marked as a possible pullback zone.