Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español.
Having surged about 22.5% over the past 30 days, Bitcoin (BTC) has sparked concerns in the crypto market that its rally may be nearing exhaustion, with a potential price correction on the horizon. However, the latest on-chain data reveals that despite elevated unrealized profits, there are still no signsof increased selling pressure for the leading cryptocurrency. Bitcoin Unrealized Profits Remain High But No Panic Selling Yet
According to a recent CryptoQuant Quicktake post by Bitcoin analyst Crazzyblockk , the cohort of new investors – those who have held BTC for less than one month – is currently sitting on unrealized profits of 6.9%. Related Reading Bitcoin Near ATH, But Long-Term Holders Aren’t Selling – More Upside Ahead? 5 days ago
In the same vein, short-term investors – holders who have held Bitcoin for less than six months – are sitting on unrealized profits of 10.7%. These figures highlight that the unrealized profit/loss ratio remains elevated, with unrealized profits far outweighing unrealized losses. Source: CryptoQuant
Crazzyblockk noted that while historically, a high percentage of unrealized profits across the network tends to precede sharp price corrections, the current setup appears different. They added: Past cycles have shown that extreme profit concentration tends to precede volatility; however, current market structure shows no outsized concentration of risk in one participant group.
The relatively narrow spread in unrealized profits between new and short-term holders indicates that profit distribution is balanced. Furthermore, although profit levels are high, loss levels remain compressed, suggesting limited pressure from distressed sellers. The contributor remarked: While macro conditions and volatility risk remain elevated, and a price correction cannot be ruled out, there is no strong behavioral signal suggesting a high willingness to trigger major distribution or selling. Further Upside For BTC?
Meanwhile, seasoned crypto analyst Ali Martinez recently predicted further upside for Bitcoin. In a post on X, Martinez noted that BTC has undergone another bullish breakout, with the potential to reach a new all-time high (ATH) around $111,500. Source: ali_charts on X
The current momentum has also drawn in retail investors. According to CryptoQuant contributor Carmelo Aleman, wallets holding less than $10,000 worth of BTC are steadily returningto the market – a sign of growing retail participation. Related Reading Bitcoin Market Cycle Indicator Hints At Bullish Breakout Ahead, Analyst Says 1 week ago
That said, some warning signs may still dampen BTC’s current bullish trajectory. For instance, despite the recent encouraging price action, Bitcoin’s Demand Momentum remainssubdued.
Similarly, Bitcoin’s “supply scarcity” narrative still lacks meaningful strength, as Aleman recently stressedthat despite depleting exchange reserves, BTC is not likely to face genuine supply scarcity in the near term. At press time, BTC trades at $106,528, up 1.8% in the past 24 hours. BTC trades at $106,528 on the daily chart | Source: BTCUSDT on TradingView.com Featured image from Unsplash, charts from CryptoQuant, X, and TradingView.com