Bitcoin experienced a brief rally above $100,000, but quickly dropped below that level due to profit-taking by long-term holders (LTHs). However, on-chain metrics and funding rates suggest that the market is stabilizing and profit-taking has eased off. The correction resulted in over $1.1 billion in liquidations, but the market trajectory is uncertain as LTHs are selling their assets at a slower pace. Falling funding rates and low realized profit levels indicate stability and less dramatic sell-offs. If funding rates decline further, it suggests a balanced market, while an increase suggests renewed speculative demand. Low realized profit levels allow bitcoin's price to find equilibrium in supply and demand.



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