Key Takeaways:
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Bitcoin supply in profit has climbed back above 85%, nearing the classic euphoric area.
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On-chain data shows strong accumulation from new and momentum buyers with minimal profit-taking.
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Bitcoin could rally toward $110,000–$115,000 helped by a “max buying” zone.
Bitcoin (BTC) is charging toward a potential new all-time high near $115,000, as a surge in profitable supply signals growing bullish momentum and a classic setup for market euphoria.
Nearly 87% of Bitcoin Supply in Profit
As of April 28, approximately 86.9% of all Bitcoin coins were in profit, according to on-chain data resource CryptoQuant.
Historically, the metric’s climb into the 85–90% range has signaled a transition from healthy optimism to speculative euphoria among traders. For instance, between October and December 2024, Bitcoin’s price surged from around $80,000 to over $100,000 while the profitable supply escalated from under 80% to as high as 99%.
In a recent analysis, CryptoQuant-based analyst DarkFrost noted that Bitcoin’s euphoric phases may not endure for lengthy periods, often leading to sharp corrections as holders start to realize gains. After reaching a record high of nearly $110,000 in January with a profitable supply hitting 99%, Bitcoin experienced a subsequent drop of over 30%. These profit-taking behaviors have historically resulted in price corrections.
Currently, the supply in profit has climbed back above 85%, a positive indicator compared to the recent bottom of 75% and the 45-50% lows observed during bear market corrections. However, it remains below 90%, which has historically indicated profit-taking behavior among traders, suggesting that there’s still potential for Bitcoin prices to rise further in the coming days.
“Of course, there are certain levels that are more “comfortable” than others, but generally, an increase in the supply in profit tends to fuel bullish phases,” DarkFrost stated.
Additional on-chain data backs this bullish outlook, with Bitcoin’s First Buyers and Momentum Buyers actively accumulating, while Profit Takers remain relatively silent, as indicated by a Glassnode metric tracking BTC’s cumulative supply per cohort.
Bitcoin “Max Buying” Zone Hints at $115,000
In late April, Bitcoin experienced a strong rebound from the $89,000–$90,000 support zone, a critical horizontal level from previous price action, reinforcing the case for additional upside. This area now serves as a “max buying” zone, where buyers have aggressively intervened to limit Bitcoin’s drawdowns, according to chartist CryptoCaesarTA.
Below this, the $70,000–$72,000 region remains untested, closely aligning with the long-term ascending trendline. If Bitcoin experiences deeper pullbacks, this zone could prove to be a crucial secondary support level.
For the time being, Bitcoin’s resilience above $90,000 keeps the bulls firmly in control. A breakout above the $100,000 psychological barrier could pave the way toward new all-time highs at $110,000–$115,000, as suggested by CryptoCaesarTA. This target aligns with previous resistance highs and a so-called “weak high” zone on the weekly chart.
This article is for general information purposes and is not intended to be legal or investment advice. The views expressed here do not necessarily reflect the views and opinions of Cointelegraph.
