Bitcoin Holds Above $105K – Will Bulls Break Through?

Bitcoin Holds Above $105K – Bitcoin’s [BTC] market structure remains intact, with the Index Bitcoin Cycle Indicator (IBCI) consolidating near the 50% zone—a historically neutral area that often signals consolidation rather than exhaustion. After peaking above 75% in early 2024, the IBCI’s retreat to mid-cycle levels suggests the market is transitioning, not topping.

At the time of writing, BTC was trading at $105,571, maintaining a healthy distance from overbought territory and continuing to respect the ascending channel that began in April. Resistance appears near $112,000, while the channel’s midline is still acting as support.

Technical Structure Suggests Potential for Further Upside

Bitcoin’s Relative Strength Index (RSI) is holding steady between 49.89 and 53.14, signaling neutral momentum and a lack of strong directional bias. However, as long as BTC holds its current technical structure, higher highs remain possible, especially if macro or fundamental catalysts return.

On-Chain Valuation Metrics Point to Hidden Strength

The Network Value to Transaction (NVT) ratio dropped 52.62% to 33.87, and the Network Value to Metcalfe Ratio (NVM) fell 43.35% to 2.49. These sharp declines suggest that Bitcoin may be undervalued relative to its on-chain activity, a trend that has historically preceded major rallies.

Stablecoin Liquidity Remains Supportive

While the Exchange Stablecoin Ratio fell 2.38% to 5.60, this doesn’t necessarily reflect bearish sentiment. Liquidity remains sufficient to fuel large entries, and dips in this ratio often precede inflows rather than indicate sell pressure.

Miners Shift to Accumulation Mode

The Miners’ Position Index (MPI) surged by 49.8% to -0.88, indicating miner outflows remain below the 1-year average. This negative reading suggests that miners are accumulating rather than selling, reinforcing the idea that current price levels may be seen as a launchpad—not a ceiling.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.