$69k BTC price Shows that 94% of all Bitcoin in Profit was a Local top
Over 94% of Bitcoin holders are now in profit due to the BTC’s rally aboves its 2021 high of $69,000. But will it Lead to profit-taking at this key price level in the short term.
94% of all BTC is back in profit
Data from CryptoQuant, analyzed by independent analyst Axel Adler Jr, shows that 94% of Bitcoin is actually in profit,with the “majority of coins having been purchased at the $55k level.”
In particular , Short Term Holders have been rewarded for buying the chopsolidatiom dip in recent months,” said Checkonchain analyst Checkmate in response to BTC’s rising profitability,adding that most STHs now have most of their holdings “back in the money.”
” This reinforces Buy-the-Dip behavior,and is a sentiment tailwind .”
History reveals that such a high supply of Bitcoin in Profit is usually a precursor to a significant price drop suggesting profit-taking at the highest levels.
When this metric reached such levels in late September,Bitcoin plunged by 8.7% from $65,800 on Sept.28 to below $60,000 on Oct. 3rd as investors and traders booked short-term profits.
A similar scenario was seen in March 2024 when the price hit a new all time high above $73,800,buoyed by capital flows Into US-based spot Bitcoins ETFs and the anticipation of the 2024 Bitcoin halving event. What followed was a 23% BTC price drop from $73,835 to a low of$56,500 on May 1.
Bitcoin’s price also moved away during the past bull cycles when high levels of Bitcoin supply in profit preceded near market cycles following 2017 and 2021.
Bitcoin price runs Into major resistance at $69,000
Despite the recent bullish price recovery, Bitcoin was rejected at $69,000.
“$BTC is currently facing resistance from a major liquidity zone,”said Japanese trader Jusko Trader in an Oct 22 post on X.
The trader was referring to the supply areas between $67,300 and $69,400, which has proven to b3 a stiff barrier over the last six months.
At the time of this report, Bitcoin was trading below this zone at $67,300, but Jusko Trader said that the latest drop was a “healthy” pullback and that BTC’s bullish momentum remained.
“ BTC’s bullish momentum is more.These minor corrections are healthy for major pullback as they bring more/new cash flow.
About $1.65 billion worth of cumulative leveraged short positions stand to be liquidated across all exchanges if Bitcoin manages to rise above the $68,000 mark.
Check Coinglass
Bitcoin might get help on breaching that level from inflows into the US spot Bitcoin Exchange-trade Funds (ETF’s) over the coming days.
Inflows into the US BTC ETFs have been gaining momentum since Oct 11, reaching $21.2 billion. In cumulative inflows on Oct 22, according to Farside Investors data.
