Bitcoin continues to attempt to breach the $95,000 barrier with investors looking out for indicators that it might indeed do so. The digital currency has failed to breach this point of resistance at this level since last Friday, market data revealed.
Still, despite this strain, a very impressive 91% of the 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 being observed during a recent market recovery, according to data from analytics firm CryptoQuant. Technical expert Darkfost notes that when Bitcoin supply in profit exceeds 90%, it generally indicates the last phase of a bull market.
This phase typically witnesses substantial price increases before any correction occurs. 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 breathing room for Bitcoin holders. With the majority of holdings in profit, investors feel less pressured to offload their coins amid market uncertainties.
This diminished pressure may assist in sustaining Bitcoin’s price stability near the $95,000 level while gaining momentum for future upside potential. Various experts suggest that this period of reduced selling pressure often leads to significant price movement in cryptocurrency markets.
Analysts Project Possible $250,000 Bitcoin
Some institutions have made notable Bitcoin price predictions. Standard Chartered forecasts that the cryptocurrency will reach $120,000 by the second quarter of 2025.
Other market analysts have projected even higher prices, in the range of $200,000 to $250,000, by the end of the year, while Bitcoin trades at $94,900, just below the psychological $95,000 mark that has proven challenging to dismantle.
History Indicates Caution Following Euphoria
While the current market sentiment appears positive, CryptoQuant advises caution; historical patterns suggest corrections often follow these euphoria periods.
Historical data from previous Bitcoin bull cycles indicate that after such phases of high profitability, significant price corrections typically ensue.
In past cycles, the proportion of Bitcoin supply in profit has dropped to approximately 50% during correction phases, a typical characteristic of bear markets.
The euphoria phase is rarely permanent, with CryptoQuant CEO Ki Youn Ju suggesting these periods generally last from three to 12 months prior to corrective action.
The ongoing Bitcoin cycle has displayed consistent growth over recent months, pushing the percentage of profitable holdings to levels that signify both opportunity and caution.
As investors look at the $95,000 resistance level, many wonder if history will once again reveal itself through another impressive price surge followed by an eventual correction.
With 91% of Bitcoin currently in profit, the market stands at a crucial juncture that will challenge both bullish forecasts and historical trends in the forthcoming months.
Featured image from Gemini Imagen, chart from TradingView
