Bitcoin has surged over the past weeks, reaching a local high of $69,400 before retracing to a healthy level of around $66,500. Despite this recent price action, some investors are apprehensive, fearing that BTC may return to sub-$60,000, as seen over the past seven months.
However, key data from CryptoQuant provides a more optimistic perspective, revealing that 94% of Bitcoin’s supply is currently in profit. This indicates that most BTC holders would benefit from selling their coins at the current market price.
This positive outlook signals strength and confidence among investors, suggesting that many expect a further rally shortly. As BTC consolidates around the $66,500 mark, the market is keenly watching for signs of bullish momentum.
The significant percentage of profitable holders may contribute to price stability, as many investors are less likely to sell. The coming days will be crucial in determining whether Bitcoin can break through resistance levels and sustain its upward trajectory or if it will succumb to bearish sentiment and test lower price ranges.
Bitcoin Investors Bought At $55,300
After recent price action, Bitcoin is holding strong above the $66,000 mark, with investors patiently awaiting the next leg up. Top analyst and investor Axel Adler recently shared a CryptoQuant chart on X, revealing that an impressive 94% of the Bitcoin supply is profitable. Notably, most coins were purchased at the $55,000 level, indicating that most holders are experiencing favorable returns on their investments.
This data suggests that fewer investors are willing to sell BTC, which could lead to increased demand as potential buyers see an opportunity to enter the market at current prices. Given that many believe Bitcoin won’t revisit levels below $60,000, buying opportunities may become scarce.
The fact that a significant number of coins were acquired at the $55,000 level offers a layer of support; even if Bitcoin’s price drops slightly from its current level, a substantial portion of holders would still be in profit.
However, it’s important to note that past performance does not indicate future results. While the current sentiment appears optimistic, market conditions can change rapidly. Traders and investors should remain cautious and monitor key support and resistance levels as BTC navigates this critical phase.
As the market continues to evolve, the focus will be on whether Bitcoin can gain the momentum needed to break through the $69,000 barrier and embark on a new upward trajectory.
BTC Strong Demand Holding The Price
Bitcoin (BTC) is trading at $67,000 and holding strong, with the $66,500 demand level acting as robust support. This stability has set the stage for BTC to target the $69,500 mark, potentially even revisiting the local high of $70,000 set on July 29.
Suppose Bitcoin manages to break above the $70,000 threshold. In that case, a massive surge will likely follow, fueled by the fear of missing out (FOMO) among investors eager to capitalize on the upward momentum.
However, caution is warranted. If BTC fails to maintain its position above the critical $66,000 support level, a retracement to the daily 200 moving average (MA) at $63,327 would be expected as the price seeks support. This scenario could create a more extended consolidation phase, leading to uncertainty in the market.
Overall, Bitcoin is at a pivotal point in its price action. The coming days will be crucial in determining whether BTC can break through key resistance levels or face a deeper pullback. Investors should remain vigilant, monitoring price movements closely as BTC navigates this critical phase.
Featured image from Dall-E, chart from TradingView