Bitcoin is currently in consolidation mode, trading below its all-time high (ATH) of $109K, as volatility, uncertainty, and speculation dominate the market. The price has been ranging between ATH and the $90K level, creating fear and hesitation among investors who suspect that the bull cycle top may already be in.
However, on-chain data suggests otherwise. Key metrics from CryptoQuant shared by Axel Adler reveal that the BTC market remains bullish, and the current consolidation phase is not necessarily a sign of weakness. According to Net Realized Profit/Loss [USD] 7DMA, Bitcoin’s consolidation could end when this metric approaches zero or turns negative. Historically, such shifts indicate that most profit-taking has been exhausted, paving the way for renewed upward momentum.
For now, Bitcoin’s ability to maintain support above key levels will determine whether it can break out into new highs or continue consolidating in this range. While some investors remain cautious, others see this as an opportunity to accumulate before the next leg up. As BTC holds below ATH, all eyes are on market signals to determine when the next move will unfold.
Bitcoin Faces Continued Volatility – But Market Remains Bullish
Bitcoin has been on a wild ride since the weekend, experiencing massive price swings that have kept traders on edge. The price plummeted to $91K, then surged above $100K, and now sits around $98K as uncertainty grips the market. Trade war fears have fueled much of this volatility, and analysts predict this trend will persist in the coming weeks.
Despite the turbulence, on-chain data suggests that Bitcoin remains in a bullish phase. Key metrics and an analysis shared by Axel Adler on X reveal the current state of network profitability. Average realized profit currently stands at $911 million, while the net average realized profit, also known as Net Realized Profit/Loss, is at $653 million. Meanwhile, average realized losses total $258 million.
![Bitcoin Net Realized Profit/Loss [USD] | Source: Axel Adler on X](https://bitcoinist.com/wp-content/uploads/2025/02/btc_42f3ae.jpeg?resize=980%2C551)
The data indicates that BTC holders are still in profit, and long-term investors remain confident. Adler points out that the end of this consolidation phase can be expected when Net Realized Profit/Loss [USD] 7DMA approaches zero or turns negative. Historically, such shifts signal that most sellers have already exited, leaving behind mainly panic-driven selling, which is typical in the final stage of a correction before Bitcoin resumes its uptrend.
For now, Bitcoin’s ability to hold above key demand levels will be crucial in determining its next move. If history repeats itself, this period of uncertainty could soon give way to a massive rally.
Bitcoin Struggles for Direction Amid Volatility
Bitcoin is currently trading at $98,500 after days of intense volatility and uncertainty. The market remains in a state of indecision as bulls struggle to push BTC above the critical $100K mark, while bears have failed to drive the price toward lower demand levels. The lack of clear direction has created a choppy trading environment, with investors closely watching key price levels to determine the next move.
Holding above $98K is crucial for maintaining bullish momentum. If BTC stays above this level, it could build enough strength for a breakout above $100K, a move that would likely trigger a rally into new all-time highs. On the other hand, if BTC fails to hold $98K, it risks dropping into lower demand zones. A breakdown could take the price toward $95K, and if selling pressure intensifies, BTC might even test the $92K level.
With trade war fears and global uncertainty affecting market sentiment, Bitcoin remains highly reactive to macroeconomic developments. Bulls need to step up and reclaim $100K quickly to regain market confidence. A strong move above this psychological barrier would reinforce the bullish trend and set the stage for a surge past ATH.
