Leading cryptocurrency Bitcoin currently hovers below a critical resistance level at $115,892 after two failed attempts to break higher in recent sessions. The stalled price action suggests a period of consolidation may be forming.
However, on-chain indicators still flash signs of growing bullish momentum, hinting that a stronger rally remains on the horizon.
Bitcoin Struggles at Resistance, But Wallet Growth and Profitability Fuel Optimism
Readings from the BTC/USD one-day chart highlight BTC’s struggle to close decisively above $115,892 over the past two trading sessions, a level that now stands as a barrier against upside. This resistance is significant, as a failure to break through often leads to an extended period of price stability, where traders assess market sentiment.
Interestingly, despite this short-term hesitation, on-chain data suggests market strength is still building. According to Glassnode, the number of BTC addresses holding a non-zero balance has climbed to its year-to-date high—currently sitting at 54.37 million wallet addresses. This metric signals active participation in the Bitcoin network and indicates that interest remains robust, despite the price stagnation.
A non-zero balance wallet refers to any Bitcoin address that holds at least a fraction of BTC, signaling active participation in the network. Trends in wallet growth often reflect rising retail and institutional interest and deeper network adoption, factors that could sustain a BTC price surge in the near term.
Further strengthening the bullish outlook, data from CryptoQuant reveals that 93.6% of Bitcoin’s circulating supply is currently in profit. This statistic has historically been associated with strong bullish phases and indicates that many investors are currently positioned favorably.
In a new report, the pseudonymous CryptoQuant analyst, Crypto Avails, explained that the long-term average of this metric hovers around 75%, meaning the current level is significantly above normal. At 93.6%, Avails asserted that this trend points to strong optimism and sustained momentum within the market.
“The market is clearly in bull mode. This might scare those thinking ‘everyone’s in profit, time to run,’ but I see it as a positive — it keeps the market’s excitement alive,” Crypto Avails stated.
Break Above $115,892 Could Unlock $122,000
With on-chain activity heating up and profitability reaching levels that typically precede rallies, BTC may be gearing up for another climb. A decisive break above the $115,892 resistance might trigger a surge toward the next significant price point at $119,367. If buy-side pressure strengthens here, BTC could further extend its gains, potentially reaching upwards of $122,190.
However, if bearish dominance develops, BTC may extend its sideways trend and could even plunge downward, targeting $111,961. This potential price drop would serve as a pivotal moment for traders and investors, illustrating the delicate balance of market sentiment surrounding Bitcoin.
