94% of Bitcoin holders in profit signal potential pullback
Bitcoin’s (CRYPTO:BTC) recent rally has pushed the majority of its holders into profit, with over 94% of Bitcoin supply now “back in the money,” according to data from CryptoQuant analysed by Axel Adler Jr.
This trend suggests heightened profit-taking pressure at the $69,000 price level, which has historically triggered market corrections.
The data indicates that most of the profitable Bitcoin was acquired around the $55,000 mark.
Independent analyst Checkmate highlighted that this profit surge has rewarded short-term holders, reinforcing a “buy-the-dip” sentiment, which may encourage further buying behavior if the price consolidates.
Despite the optimistic outlook, past instances show that such high profitability levels often precede notable price drops.
In September, when a similar profit percentage was reached, Bitcoin experienced an 8.7% decline.
Earlier this year, Bitcoin also saw a 23% correction after reaching its all-time high of $73,800 in March.
Currently, Bitcoin is facing stiff resistance around the $69,000 mark.
Japanese trader Jusko Trader emphasised that the $67,300 to $69,400 range remains a key barrier, but described the current pullback as a “healthy correction” amidst continued bullish momentum.
The trader added, “BTC’s bullish momentum is more. These minor corrections are healthy for major pullback as they bring more/new cash flow.”
Bitcoin’s potential breakthrough could impact over $1.65 billion worth of leveraged short positions, which stand to be liquidated if the price breaches $68,000, based on CoinGlass data.
Moreover, recent inflows into US-based spot Bitcoin ETFs have provided additional support.
Since October 11, these ETFs have seen cumulative inflows reach $21.2 billion, indicating growing investor interest.
While Bitcoin’s current trend suggests resilience, traders are cautiously eyeing this critical price zone, wary of possible corrections driven by profit-taking or further resistance at higher levels.
At the time of writing, the Bitcoin price was $67,056.19.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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