Jubilation Or Warning Sign? 90% Of Bitcoin Supply In Profit – Analysis

Christian Encila

4 months ago

3 mins read

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Bitcoin continues to attempt to breach the $95,000 barrier with investors looking out for indicators that it might indeed do so. The digital money has failed to breach the point of resistance at this level since last Friday, market data revealed.

Still, despite this strain, a very impressive 91% of entire supply of Bitcoins are in the black, reflecting what market strategists describe as the “euphoria phase” of market activity.

Profits Soar As Market Rebounds

The strong percentage of profitable Bitcoin holdings is during a recent market recovery, according to data from analytics firm CryptoQuant. Technical expert Darkfost notes that when Bitcoin supply in profit is over 90%, it generally represents the last phase of a bull market.

This phase usually sees large price rises before any correction takes place. During recent price drops, the supply in profit nearly fell to 75%, a level that analysts believe could have triggered widespread selling if breached.

Market Pressure Eases On Holders

The current context provides room to breathe for Bitcoin holders. Since the majority of holdings are in profit, investors are less pressed to offload their coins during times of market uncertainty.

This diminished pressure might assist in sustaining Bitcoin’s price stability near the $95,000 level and gaining steam for future upside potential. As per various experts, this period of diminished selling pressure tends to lead to significant price action in cryptocurrency markets.

Analysts Project Possible $250,000 Bitcoin

Some institutions have made some high-profile Bitcoin price predictions. Standard Chartered is predicting that the cryptocurrency will hit $120,000 by the second quarter of 2025.

Other market analysts have predicted higher prices, in the range of $200,000 to $250,000, before the year’s end. These are some of the predictions as Bitcoin traded at $94,900, just below the psychological $95,000 mark that has been challenging to crack.

BTCUSD trading in the $94,847 region on the 24-hour chart: TradingView.com

History Indicates Caution Following Euphoria

Although the market mood is positive today, CryptoQuant cautions that history indicates a pattern of corrections after these euphoria periods.

Historical data from past Bitcoin bull cycles suggest that after such periods of high profitability, corresponding massive price declines usually ensued.

In previous cycles, the proportion of Bitcoin supply in profit has dropped to approximately 50% at these times of correction – a characteristic of bear market situations.

The euphoria phase is not permanent, with CryptoQuant CEO Ki Youn Ju intimating such periods usually last from three to 12 months before the corrective action sets in.

The ongoing Bitcoin cycle has witnessed consistent growth over the past few months, driving the percentage of profitable holdings to levels that indicate both opportunity and caution.

As investors observe the $95,000 resistance level, many are asking whether history will repeat itself in another spectacular price spike before an eventual correction.

With 91% of Bitcoin currently in profit, the market is at a critical point that will challenge both bullish forecasts and historical trends in the coming months.

Featured image from Gemini Imagen, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.