Bitcoin’s 3-Day Rally Intensifies as Supply Zones and Profit-Taking Dynamics Reshape Market Cycle

Bitcoin surges through resistance levels as institutional momentum builds—defying traditional market skepticism once again.

Supply pressure mounts at key psychological levels while profit-taking activity signals potential consolidation ahead.

Traders watch Fibonacci extensions as the rally extends into uncharted territory—typical Wall Street analysts still scratching their heads about 'digital gold' while missing another 20% move.

Market cycles accelerate as retail FOMO meets institutional accumulation—because nothing makes traditional finance professionals more uncomfortable than assets that don't obey their decades-old textbooks.

• Bitcoin rises for the third session in a row, signaling easing selling pressure in the market.
• Analysts highlight mid-cycle signals as address activity cools and long-term holders take profits.
• Strong support zones are holding, though resistance from short-term sellers could stall momentum.

Bitcoin was on its third consecutive session of rise as it traded at around $113,010, up by 2.18% since yesterday. The recovery is an indication that selling pressure is subsiding and holders are reversing their course. Key price levels are now under the observation of the traders, with the market seemingly entering the next leg of its cycle.

Source: CoinMarketCap

According to analyst Alex, Bitcoin Normalized Address Activity dropped to 30%, 60% during the 124,000 ATH. The decline also reflects less flow of transactions, hence reduced on-chain movement. The selling pressure has reduced with less activity, clearing the path to a more stable market outlook.

Mid-Cycle Signals and Strong Market Support

In the long-term perspective, the activity of the annual address activity increased to 40 percent today as compared to 30% with a capital of $80,000. It is an indication that there are increasing numbers of long-term holders selling on elevation in prices. 

Context is selling activity was 85% in September 2023, at which point bitcoin was trading at $37,000. Analysts consider this trend to be a mid-cycle stage in which the supply pressures increase but remain moderate.

Source: X

Glassnode data shows Bitcoin sits above a dense supply cluster between $93,000 and $110,000. This is an area that has accumulated consistently since December 2024, and massive volumes of buying have been realized. It is common to find strong support within clusters, such as investors who have purchased in this range will not be willing to sell below their point of entry.

Source: X

Nevertheless, some speculators caution that an abrupt increase in selling pressure WOULD make even this zone of solid accumulations collapse. The recovery and swing momentum would be killed by a break at the base. Even following the recent bullish sound, this is one of the most important warnings.

Bitcoin Faces Cost Basis Pressure

Additional details are the cost basis measures by Glassnode. The three-monthly cost-founded objectives would be $113,600, and the monthly cost-founded targets would be 115,600. These figures indicate how investors tend to enter the businesses in those times. The price at which Bitcoin is traded is lower than both values; hence, short-run holders are actually making losses.

Source: Glasnode

This would therefore cause any recovery rally to stall out since such investors will sell at breakeven so that they can be off. This puts in place a price ceiling because until confidence is restored, gains will meet selling pressure.

Michael van de Poppe identified the level of $112,000 as a point of interest. If it remains above this level, he reports that momentum may increase, and this may cause a new upward move. That would enhance Optimism in the market players.

Source: X

But there is caution since defiance is just over the head. Analysts are anticipating that some holders would sell immediately as the prices approach the cost basis in recent times. That would stall growth, leaving Bitcoin within a small bandwagon until greater persuasion develops.

Bitcoin resilience is seen through three successive days of gains, though the market remains frail. Long-term investors introduce an element of stability, and short-term investors introduce uncertainties. The risk- and opportunity-defining status determines whether the supply base takes or breaks as the supply chain bears some pressure.