Long-Term Bitcoin Holders Stay Profitable as Analyst Warns of Weakening BTC Momentum

TLDR:

Bitcoin trades at $111,273, with short-term holders waiting for a $113K breakout to turn profitable again.
The NUPL data shows long-term holders remain in profit, needing a fall below $37K to face losses.
Analysts say the $113K mark may act as resistance, triggering profit-taking among recent Bitcoin buyers.
The LTH/STH SOPR ratio shows short-term traders are still selling into strength while long-term holders pause.

Bitcoin’s market shows two different realities right now. Long-term holders are still sitting on healthy profits, while short-term traders are waiting for a recovery that may never come soon. 

The $113K mark has become a critical zone, not just for potential gains but also for resistance that could hold prices back. With profit-taking pressure rising and momentum fading, the market’s next move could set the tone for weeks ahead.

According to data shared by CoinGecko, Bitcoin trades at $111,273, marking a 4.22% daily increase but down 2.99% weekly. Despite the short-term uptick, traders appear cautious.

Bitcoin Price Faces Key Resistance Near $113K

Crypto analyst Joao Wedson explained that long-term holders (LTH) remain confident, with their unrealized profits still strong. Short-term holders (STH), however, are underwater, holding assets in the red.

Wedson pointed out that Bitcoin crossing $113.2K could change that, allowing many short-term traders to regain profits. Yet, he also warned that this level doubles as a strong resistance zone, which could invite selling pressure.

From a structural view, Wedson highlighted the Net Unrealized Profit/Loss (NUPL) indicator for long-term holders, showing profits remain stable. He added that for this group to feel real losses, Bitcoin would have to drop below $37K, a level far from current prices.

Wedson’s analysis further mentioned the LTH/STH SOPR ratio, which compares profit-taking trends between both groups. The ratio has declined slightly, meaning long-term holders are easing their selling pace while short-term traders continue to exit at smaller gains.

Analysts Warn of Weakening Momentum in Bitcoin Price

Market watcher Captain Faibik expressed a cautious tone, saying he’s turning bearish on Bitcoin for the midterm. He noted that while BTC still trades above the Weekly MA50, the structure is weakening. The rising wedge pattern, he explained, shows momentum fading.

Faibik reiterated that he expects a correction toward $100K, a prediction that faced criticism but aligns with what he sees in the charts. He added that although bulls remain in control for now, new buyers may get trapped if momentum slows further.

He stated he would switch back to a bullish outlook only when Bitcoin confirms strength again. Until then, he intends to call the trend as he sees it, regardless of market sentiment.

Right now, long-term holders seem relaxed, having realized profits earlier in March 2024, December 2024, and near the last all-time high. Meanwhile, short-term traders are stuck watching the $113K level, waiting for a recovery to finally flip their portfolios back to green.