Bitcoin surged to 98K then pulled back. What should holders do?

Bitcoin approached nearly $98,000 this Monday but encountered significant selling pressure at that level, leading to a slight pullback. According to the latest news, the crypto trading indicator analysis platform CoinKarma believes that current market liquidity remains balanced, with no clear signals from key indicators. It is suggested that long positions entered at the early-year lows may consider taking profits.

Market Phenomenon of Sharp Rise and Pullback

After reaching a recent high this week, BTC faced resistance, reflecting market disagreement at high levels. Based on the latest data, BTC’s current price is $95,145.65, down approximately $2,900 from the high near $98,000, a decline of about 3%.

From a time cycle perspective, BTC’s rally has been quite substantial:

This indicates that since early January, BTC has risen nearly 8%, making the profit space quite attractive for investors who entered at the beginning of the year.

Liquidity Status and Market Signals

CoinKarma’s analysis points out that although BTC experienced the “most noticeable selling pressure in recent weeks” near $98,000, this did not lead to an imbalance in market liquidity. Key observation points include:

• Buy and sell side liquidity remains relatively balanced, with no extreme imbalance
• Other key market indicators have yet to provide clear directional signals
• The selling pressure, while evident, is part of normal profit-taking behavior rather than panic selling

From a market structure perspective, BTC still dominates. According to the latest data, BTC’s market cap reaches $1.90 trillion, accounting for 58.99% of the entire crypto market, with circulating supply at 95.13% of the total supply. This dominance means BTC’s movements have a profound impact on the overall market.

Strategic Considerations for Holders

Why is profit-taking recommended?

For longs entered at the relatively low point at the start of the year, there are several factors worth considering at this moment:

• Nearly 8% monthly increase, with substantial unrealized gains
• Clear resistance around $98,000, indicating strong sell pressure at that level
• Indicator signals are not definitive, reducing certainty in chasing higher

Suggested operational approach

CoinKarma recommends the following options:

• Full liquidation: lock in current profits and fully avoid subsequent risks
• Partial liquidation: retain some positions to participate in further gains while recouping part of the capital
• Wait for signals: make decisions after clearer technical or fundamental signals emerge

This reflects a pragmatic investment principle: when uncertainty is high, moderate profit-taking is a rational risk management strategy.

Future Focus

From a technical perspective, the key question now is: can BTC find new support after profit-taking and continue upward? The market should observe:

• Whether around $95,000 an effective support can form
• Whether other technical indicators will provide clearer signals
• Whether market sentiment will undergo a noticeable shift

Summary

Bitcoin’s sharp rise and pullback are signs of market maturity rather than a signal of collapse. The current key point is that liquidity remains balanced, and no extreme sentiment has emerged. For those with profits, in the absence of clear new signals, considering partial or full profit-taking is a wise risk management approach. The real opportunities may only appear after the market digests this wave of profit-taking and new directional signals are established.