Bitcoin’s Epic Rise and Strategic Pullback: What You Need to Know
By Darius Baruo | Jun 05, 2025
Bitcoin has surged to an unprecedented height of $111.8K, igniting excitement among investors. Yet, as is often the case in the crypto realm, this milestone has been coupled with a notable pullback driven by profit-taking—especially by long-term holders. As of now, Bitcoin’s price is hovering around $103.2K, with critical support levels identified at $103.7K and $95.6K. Let’s delve deeper into these dynamics to understand what they mean for the future of Bitcoin.
The Profit-Taking Phenomenon
It’s no secret that seasoned investors often capitalize on their gains, and Bitcoin is no exception. Long-term holders, particularly those who have been steadfastly holding their assets for over a year, are currently driving the selling pressure, realizing profits amounting to a staggering $1.47 billion per day. This represents the fifth major wave of profit-taking in this cycle, highlighting a potential pivot from accumulation to distribution. The question we’re grappling with at Extreme Investor Network is: will this shift sustain the momentum we’ve seen in the past year?
Accumulation vs. Distribution: A Tactical Shift
The Cumulative Volume Delta (CBD) Heatmap paints a telling picture. Zones that once served as safe havens for accumulation—specifically those between $25K–31K and $60K–73K—are now sending signals of distribution. This shift marks a significant psychological transition within the market, as former buyers look to secure profits and cast doubt on the bullish narrative. At Extreme Investor Network, we advise our followers to keep a close eye on these evolving dynamics; understanding these trends is imperative for making informed investment decisions.
Decoding On-Chain Analysis and Market Sentiment
Utilizing on-chain pricing models such as the Spent Supply Distribution (SSD) Quantiles can offer valuable insights into potential support and resistance levels. Currently, the 0.95 quantile, which signifies the top 5% of spent supply, stands at $103.7K, while the 0.85 quantile, indicating a secondary support level, is rooted at $95.6K. Resistance appears at $114.8K—a barrier that could inhibit further upward movement unless a robust wave of buyer interest surfaces.
Navigating Current Market Dynamics
The present market environment presents a crucial turning point. The potential for either mid-cycle consolidation or the formation of a more significant top is palpable. The short-term holder cost basis now rests at $97.1K, and standard deviation bands frame our current market sentiment. A significant directional shift could occur if Bitcoin breaches either $114.8K on the upside or $83.2K on the downside.
Is This a Temporary Pause or a Trend Reversal?
As Bitcoin treads through these tumultuous waters, its recent ascent has been met with considerable pushback from long-term holders opting to cash in. The resilience of the market is set to be tested in the coming weeks, forcing investors to confront whether this represents a temporary stall or a more profound trend reversal.
In conclusion, Bitcoin’s journey is one of constant evolution. At Extreme Investor Network, we’re committed to providing you with comprehensive analysis and insights to navigate this dynamic landscape. Stay tuned for updates as we continue to monitor these trends and help you make the most of your crypto investments.
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At Extreme Investor Network, we believe that in the world of cryptocurrency, knowledge is power. By staying informed about market movements and embracing a strategic mindset, you can position yourself to thrive in this unpredictable but rewarding landscape.