Bitcoin, the leading cryptocurrency, is currently struggling to build upward momentum after a recent sharp decline in the overall market, with significant resistance observed at the $103,000 mark. Despite these challenges, the profitability of Bitcoin holders is rising, with a substantial number of coins now in the profit zone.
Growth in Profitability Among Bitcoin Holders
Expert analyst Axel Adler Jr. has noted a positive change in Bitcoin’s market behavior and investor sentiment. Even though Bitcoin recently experienced a price correction, a significant increase in profitability for investors has been observed.
In a post, Axel Adler revealed that the quantity of Bitcoin in profit has seen a notable rise. Recent on-chain analysis indicates that 5.9 million BTC have now entered the profit category, with the total number of profitable coins reaching approximately 19.7 million. This trend in profitability has been evident for several months, especially since September, when Bitcoin began a strong rally toward reaching new highs.
It’s important to point out that during the latest price dip below $90,000, the supply of Bitcoin in profit decreased to 16.5 million BTC, indicating that around 3.2 million BTC shifted from profit to loss as prices fell from $109,000 to $89,000. However, the numbers have since increased, reflecting a gradual recovery from this sharp decline.
This growth highlights Bitcoin’s positive price fluctuations in recent times and suggests a revival of investor confidence, as a considerable portion of Bitcoin holdings are now above the original purchase price.
Historically, such trends have led to reduced selling pressure, allowing Bitcoin to experience upward momentum. If this positive trend retains its strength, it could spark increased interest from investors, potentially leading to bullish movements in the near future.
In light of rising profitability, Alphractal, a sophisticated investment and on-chain analytical platform, has reported that a large majority of Bitcoin wallet addresses are currently profitable. Current statistics show that over 95.2% of BTC wallets are in profit, while only 2.707% are facing losses, primarily due to purchases made at prices higher than the current value.
Alphractal also investigated the 7-day active supply of newly acquired Bitcoin for additional insights. Traditionally, spikes in these movements are seen during price peaks or times of high volatility, hinting at growing interest from both investors and institutions in critical market phases.
Is Bitcoin Building Upward Momentum?
Currently, Bitcoin is experiencing a significant price improvement, successfully reclaiming the key $105,000 level. Market analyst Daan Crypto Trades has noted that “Bitcoin is positioned to close its highest monthly candle ever.”
Meanwhile, the poor performance of altcoins has led to a contrasting sentiment. Despite this shift in sentiment, Daan Crypto Trades still regards Bitcoin as the leading cryptocurrency as it continues to reach new highs, suggesting that the bullish trend remains intact.
