Bitcoin has once again taken center stage in the crypto market. Following a market resurgence, the flagship asset rebounded above the $99,000 mark. During the sudden price recovery, a significant portion of BTC moved back into profit territory.
Millions Of Bitcoins Return To Profit
The renewed general market upsurge pushed Bitcoin’s price to key resistance levels. As the cryptocurrency stages a price rebound, Glassnode, a leading financial and on-chain data platform, has called attention to a huge portion of Bitcoin returning to profit.
At the time of Glassnode’s report, Bitcoin had gained momentum as its price soared to $97,900, marking the highest level in the past two months. The data shows that more than 3 million BTC are now back in the profit zone, following the price recovery, which provided relief to market participants.
The return of previously underwater BTC holdings into profit territory is likely to bolster investor confidence and strengthen market sentiment about the sustainability of the recent rally. Furthermore, the development could set the stage for a potential sustained upside movement to crucial levels such as the $100,000 mark.
Presently, the percentage of Bitcoin’s overall supply in profit has risen to 88%, with losses previously concentrated among buyers from the $95,000 and $100,000 range. This positive advancement in supply profitability signals an impending euphoria phase.
After examining the supply profit oscillator, Glassnode highlighted that the metric had bounced back from its long-term mean, suggesting a broader resetting of investor expectations without a widespread surrender.
Should the percentage of supply in profit continue to increase, it might spark a major rally for BTC as investors’ engagement rises in anticipation of the upsurge. Thus, the ongoing upward move above the $99,000 threshold could be part of a larger trend.
Short-Term BTC Holders Selling In The Face Of Growing Profitability
While a significant number of BTC returning to profit is believed to trigger investors’ confidence, this is not the case for short-term holders. Alphractal, an advanced on-chain data platform, revealed a surprising trend among these investors even as the recent rebound pushes short-term holders back into profit.
According to the on-chain platform, the short-term holders’ cost basis has been hit, but these players are persistently distributing their holdings. Surprisingly, this growing selling pressure is attributed to their return to profitability, raising questions about a potential short-term pullback.
Alphractal stated that the STH Realized Price currently stands at $93,400, and Bitcoin should ideally maintain this level in the near future to prevent a fresh selling wave from happening. In the meantime, this area serves as a solid base against pullbacks, and short-term holders will probably make every effort to protect it.
At the time of writing, BTC was trading at $99,700, demonstrating a nearly 4% rise in the past week. Trading volume has also grown sharply alongside price. CoinMarketCap data shows a more than 60% rise in trading volume in the past day, reflecting bullish conviction.
Featured image from Pixabay, chart from Tradingview.com
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