Bitcoin’s Delta Metric Signals More Upside Ahead – Nearing Critical Profit-Taking Threshold
Bitcoin’s Delta Metric—a key on-chain indicator—is flashing bullish signals as BTC approaches a historically significant profit-taking zone. Traders are watching closely as the metric suggests room for further upside before a potential pullback.
The Delta Metric, which tracks the ratio of unrealized profits to market capitalization, currently sits at levels that have preceded major price surges in past cycles. This time, however, Wall Street’s usual suspects are already positioning themselves to be ’early’ while retail traders scramble to catch up.
With institutional adoption accelerating and macroeconomic conditions favoring scarce assets, Bitcoin’s current rally might just be getting started. But as always in crypto markets: when everyone’s finally convinced it’s a sure thing—that’s usually when the music stops.
Bitcoin Metrics Warns Of Profit-Taking Ahead
Bitcoin is facing a critical test as it struggles to reclaim the $100,000 psychological level. After surging to $97K, bulls have shown signs of exhaustion, and some analysts are calling for a short-term retrace. Despite this, there is still hope for the bullish case as BTC continues to hold above key support at $92,000. This level has acted as a strong demand zone in recent weeks, and maintaining it could set the stage for another attempt to break through resistance.
The macro environment remains uncertain, with global financial markets reacting to ongoing trade negotiations between the US and China. Tensions between the two nations continue to influence risk sentiment, keeping investors cautious even as crypto assets push higher.
Adler has highlighted a key on-chain signal: the Delta metric. Delta measures how far Bitcoin’s market cap is above the average price at which all coins last changed hands. According to Adler, historical data over the last four years shows that when Delta reaches 170%, investors typically begin to take profits—often leading to a sell-off. Currently, Delta sits at around 112%, meaning a 58 percentage point rise could trigger the next round of selling pressure.
Still, the market remains in a bullish position. Buying momentum is strong, corrections appear to be behind us, and technical structure favors continuation, so long as $92K holds. If bulls manage to push above $98K and reclaim $100K, Bitcoin could enter a new expansion phase. However, with Delta climbing and macro risks lingering, traders should stay alert. The next move could define the trajectory of the market heading into the summer.
BTC Testing Critical Resistance
Bitcoin is trading at $97,088, pushing higher after a week of consolidation below key resistance. The daily chart shows BTC approaching the psychological $100,000 barrier, with price action forming higher lows and maintaining bullish momentum. Both the 200-day simple moving average (SMA) at $90,699 and the 200-day exponential moving average (EMA) at $86,514 have been reclaimed, reinforcing the underlying strength of the current trend.
This recent rally marks a critical phase for BTC, as price tests the upper bounds of a multi-month range established between $90K and $103.6K. A decisive daily close above $100K would signal a breakout and likely trigger renewed upside momentum toward the previous high at $103,600 and potentially beyond.
Volume remains steady, supporting the bullish structure. However, resistance at $100K has proven significant in the past, and traders should monitor for potential rejection or exhaustion. If Bitcoin fails to break out, support NEAR $92K remains the key level to hold.
Overall, the trend remains bullish as long as BTC holds above the 200-day averages. With global markets stabilizing and on-chain metrics improving, a breakout above $100K could confirm a new phase of expansion for Bitcoin in the coming weeks.
Featured image from Dall-E, chart from TradingView
