Bitcoin bulls must defend the support level of $95.6k as long term holders take profit.

According to Glassnode's report on June 5, Bitcoin (BTC) is currently facing pressure from long-term investors aiming to protect profits, and needs to maintain the important support level of $95,600 to sustain the upward trend. If the price breaks below the six-figure level, the outlook will become more uncertain.

The report indicates that after falling below $103,700, the next main support level is the psychological price level of $100,000, and if it cannot hold, the $95,600 level will become an important point to watch.

BTC price chart | Source: TradingviewAs of now, Bitcoin is trading at $101,674, holding above the six-figure level but has decreased by 3.8% in the last 24 hours.

The Cumulative Volume Delta heatmap from Glassnode shows the accumulation clusters created by trades in the spot market in the ranges of $81,000 to $85,000, $93,000 to $96,000, and $102,000 to $104,000. These areas are assessed as potential for demand, as coins have previously moved here with large volumes.

The report identifies the first official support level at the 0.95 percentile of the Supply Distribution that has spent (SSD), equivalent to approximately $103,700, followed by the 0.85 percentile near $95,600. Traders are currently monitoring the lower boundary to assess the ability to absorb ongoing sell orders.

The cost basis for short-term holding investors is currently at $97,100. The standard deviation bands around this index set statistical benchmarks at $114,800 above and $83,200 below.

A decisive break below the base cost is often accompanied by prolonged downturns, while a recovery above this level typically restores bullish momentum.

Veteran investors are making profits

The report also indicates that the recent movement mainly comes from long-term investors who have accumulated coins in the range of $25,000 to $31,000 and from $60,000 to $73,000. These groups have realized an average profit of about $1.47 billion per day over the past week, marking the fifth time in this cycle that profit-taking has occurred above the $1 billion threshold.

When adjusted for market capitalization, the average return on capitalization over 90 days has decreased compared to previous cycles, indicating a shift towards a more cautious distribution.

The realized profit analysis shows that holders for over 12 months dominate the selling activity, surpassing short-term traders by a ratio of more than three to one.

The report highlights a typical pattern of end-of-cycle rotations, where experienced wallets provide liquidity, while newcomers decide whether to defend support levels or not.

If the SSD level of $95,600 cannot hold, the market may test the cost basis of short-term investors holding near $97,100 as a resistance level. Failing to reclaim this level will place Bitcoin at the next test at the low deviation range of $83,200, which has protected the price in the March downturn.

Mr. Giáo