TLDR
- More than 95% of Bitcoin’s circulating supply is in profit as the price surges past $117K, driving market optimism.
- Bitcoin surge above $117K could lead to increased sell-side pressure, as high profitability often precedes market corrections.
- Bitcoin price consolidation near $117K marks key resistance levels, with traders monitoring for potential breakouts or pullbacks.
- Analysts warn that heightened volatility could follow Bitcoin’s recent price surge, as more holders reach profit-taking thresholds.
Glassnode, an on-chain analytics firm, has reported that more than 95% of Bitcoin’s circulating supply is now profitable as the price surpasses $117,000. This marks a new milestone for cryptocurrency and has caught the attention of analysts. While the surge reflects growing market optimism, it also signals potential risks of increased volatility and selling pressure.
Bitcoin’s Price Surge Drives Widespread Profitability
Bitcoin’s recent rally has resulted in a significant increase in the profitability of its holders. According to Glassnode, over 95% of Bitcoin’s circulating supply is now in profit, a major shift from previous levels. As Bitcoin breaks new price levels, more investors find themselves in profit, fueling further interest in the asset.
This surge in profitability points to the growing appeal of Bitcoin as both an investment and a store of value. However, analysts note that such high levels of profitability can sometimes be a precursor to sell-offs. When a large portion of the circulating supply becomes profitable, holders may decide to lock in their profits, increasing the likelihood of selling pressure.
Increased Volatility and Sell-Side Pressure
The high profitability of Bitcoin holders could lead to increased sell-side pressure in the market. Historically, when Bitcoin experiences extended price increases, the level of profitability among holders rises, often leading to a phase of distribution. In this phase, many investors sell their holdings, leading to price corrections.
Bitcoin price action over the last few weeks has been marked by heightened volatility. While the increased profitability among holders could lead to more sell-offs, it could also signal short-term bullish resets if buyers step in to absorb the sell pressure. Analysts are closely monitoring the situation to see if these sell-offs will cause a significant pullback or if Bitcoin can maintain its upward momentum.
Key Resistance Levels and Market Sentiment
Bitcoin price has been consolidating around key resistance levels, which have become focal points for traders. As the Bitcoin price surpasses $117,000, analysts are looking at the $120,000 level as a critical resistance zone. If this resistance is broken, Bitcoin could see further upward movement, but it could also face a correction if it fails to hold at this level.
Despite the potential for increased volatility, market sentiment remains generally positive. Many traders believe that Bitcoin current price trajectory signals continued growth in the long term. However, the increased profitability among holders creates a risk of short-term selling, as investors take profits off the table.
Glassnode’s analysis has provided valuable insight into the current state of the Bitcoin market. With over 95% of Bitcoin’s circulating supply now profitable, analysts will continue to monitor key price levels and market behavior to assess the potential for further volatility or price adjustments.
