Bitcoin's Profitability Soaring: 98% of Wallets Show Gain, Yet Sustainability questioned
Bitcoin's Profitable Run (Unleashing the Bullish Wave)
Hey there, crypto enthusiasts!
The Bitcoin [BTC] market is heating up! With theSupply in Loss reduction below 2%, a staggering 98% of holders are profiting. WOW! Here's what's going down in the BTC wild frontier.
Take a closer look, amigos: the recent price surge pushed BTC from $76k to a local high of $104k. Reckon we'll hit the moon next?
CryptoQuant got the scoop on this rollercoaster ride. Their research revealed that this massive profitability has driven out the Supply in Loss to historic lows.
Hold on tight, because it's time to look at how this unfolds in the market!
When Good Things Come in Bunches
The Bitcoin market could be getting a tad too cozy with its own success. Historically, high profitability levels among holders are a sign of early market euphoria. And you guessed it, our humble BTC isn't immune to euphoria!
Our trusted friends at CryptoQuant have been reporting rising NUPL (Net Unrealized Profit/Loss) over the past week. As it currently stands at 0.56, most BTC holders are feeling pumped and raring for more. Aight, time to HODL!
Euphoria Ahead?
Well, bet on it! Euphoria is closer than it seems when BTC's Supply in Loss drops between 0 - 2%. These periods coincide with late-stage bull runs, often signaling the final run before the inevitable correction.
We know the party comes to an end once the NUPL touches 0.75. And guess what? With so much gain in our pockets, we're getting awfully close to that point!
Distribution Time
As the party heats up, the chance of distribution increases. Long-term holders might be thinking about cashing out on their profits, while newcomers may be eager to join the party. This mismatch in sentiment could lead to trouble.
Take a gander at our CryptoQuant findings: holders have already started distributing, with some choosing to realize their profits.
Exchange Netflows also turned positive, suggesting that 756 BTC moved onto exchanges within the past couple of days. This could mean that deposits are outpacing withdrawals, pointing to rising selling pressure.
This pressure is precisely what we saw during previous cycles right before local tops.
Déjà Vu?
The same pattern has popped up once more, leaving us wondering: will history repeat itself and lead us to the top this cycle?
With such a low percentage of supply in loss, we're entering a mature market phase. The rise in exchange flows hints at an overheated market this time around. Buckle up, the wild ride's not over yet!
If past events are any indicator, we could see Bitcoin drop back down towards $96k, breaking free from the 100k mark.
However, just because the top emerges weeks after the supply in loss drops, doesn't mean we can't see another surge towards $106K first. This level has previously acted as a resistance, and if BTC breaks through it, we might be in for a wild ride to $109k in January 2025.
So buckle up, partner! It's going to be a bumpy but profit-filled road ahead!
Don't forget to check out our other hot articles: take our survey and you might win $500 USDT.
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Introduction | Source
- With the Bitcoin [BTC] market experiencing a bullish wave, some crypto enthusiasts might consider investing in other cryptocurrencies such as Ethereum [ETH], Dogecoin, or even Bitcoin Cash to diversify their wallet.
- As the Bitcoin market continues its ride, it's essential to keep an eye on other digital assets like Ripple and Litecoin, as their profitability might also increase during periods of market euphoria.
- For those looking to capitalize on the current crypto trends, it may be wise to exchange a portion of their BTC gains for other promising cryptos like Cardano or Polkadot to maximize their investing potential.
- In a market where Bitcoin's profitability is through the roof, finance experts suggest monitoring exchange netflows and holdings across various platforms, including Binance, Coinbase, and Kraken for potential buying opportunities in lesser-known altcoins like Chainlink or Terra.
