Bitcoin has surged 12% this week, but the momentum toward record highs may be hampered by ongoing profit-taking. Data shows that over 94% of the bitcoin circulating supply is currently in profit, suggesting potential selling pressure from profitable holders. Historically, when the percentage of supply in profit crosses this threshold, bitcoin has faced subsequent price corrections. Long-term holders, who have kept their coins for at least 155 days, may begin to cash out, as they hold 14 million BTC and only 500,000 of that is at a loss. Additionally, realized profits have recently spiked, with over $11 billion realized in just over a week, marking the largest profit-taking day since late May. Factors indicating a strong rally include new cycle highs and stability despite rising DXY index levels, which previously correlated with price drops for bitcoin. These aspects illustrate a complex landscape for bitcoin, balancing potential growth with profit-taking activities.

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