10% weekly gain marks Bitcoin’s strongest move in weeks.
Profit/Loss ratio close to 1.0, hinting at potential breakout.
Greed sentiment reaches its highest level since November 2024.
Bitcoin has broken above $90,000 after five weeks of sideways trading, reigniting excitement across the cryptocurrency market.
As of now, Bitcoin is trading near $94,680, posting over a 10% increase over the past week and edging close to the crucial $95,761 resistance level.
Source: CoinMarketCap
Investors are watching closely, as a move above this threshold could set Bitcoin on a clear path toward the $100,000 milestone.
However, sentiment indicators also show signs of overheating, with greed levels among Bitcoin holders reaching their highest since Donald Trump’s election night on November 5, 2024.
Although momentum remains positive, market conditions suggest that Bitcoin faces a delicate balancing act between sustaining its rally and avoiding a sentiment-driven pullback.
Traders, analysts, and institutional investors are all closely monitoring how Bitcoin will behave near these key technical levels in the coming sessions.
Bitcoin rally builds as P/L ratio nears 1.0
Bitcoin’s macro momentum is strengthening as the Profit/Loss (P/L) ratio moves closer to the neutral 1.0 mark.
A 1.0 ratio reflects an equal number of coins in profit and loss, signalling a healthier and more balanced market structure compared to earlier periods of extreme loss.
Historically, this level has acted as a strong resistance during bear cycles, but a successful move above it could clear the way for continued upside and renewed investor confidence.
Still, a near-neutral P/L ratio often introduces volatility. Investors reaching breakeven or modest profits may be tempted to sell, creating selling pressure even as overall sentiment remains positive.
Bitcoin’s ability to maintain strength will depend on whether holders stay committed as the price tests new highs, especially as short-term traders eye quick profits.
Rising greed highlights risks for Bitcoin
Investor sentiment surrounding Bitcoin has grown sharply more optimistic.
Data from social media shows a surge in bullish posts, with current optimism levels comparable to those seen on November 5, 2024, when Donald Trump was elected.
Trading forums, cryptocurrency news outlets, and blockchain social analytics platforms have all reported a noticeable uptick in the volume of positive Bitcoin commentary, reflecting widespread bullishness.
While this growing confidence fuels Bitcoin’s rally, it also brings the risk of a sentiment-driven top.
When investor greed peaks, markets often experience abrupt corrections as traders rush to lock in gains.
Bitcoin’s price trajectory over the coming days will largely hinge on whether investors continue to hold through volatility or trigger a wave of profit-taking.
Maintaining momentum above key resistance levels could prevent a deeper correction, but the margin for error appears slim.
Resistance and support zones in focus
Bitcoin’s immediate resistance remains at $95,761. A decisive break above this level could accelerate gains, putting Bitcoin on track to test the $100,000 psychological barrier.
The persistent greed among traders could discourage profit-taking and instead drive prices even higher if momentum remains strong, creating the potential for an explosive rally.
If Bitcoin fails to sustain its levels and falls below $93,625, the risk of a pullback increases significantly.
Further downside towards $91,521 could weaken bullish momentum, while a deeper decline to $89,800 could extend Bitcoin’s consolidation phase, possibly leading to a re-evaluation of bullish expectations.
For now, Bitcoin’s next steps will likely depend on a combination of technical breakouts, investor sentiment trends, and broader market liquidity conditions.
