Source: Cointelegraph
Original: “Bitcoin (BTC) supply indicator approaches 'historical euphoria' zone, target price $115,000”
Bitcoin is moving towards a potential new historical high of $115,000, with a surge in profitable supply indicating strengthened bullish momentum and creating a classic setup for market euphoria.
According to on-chain data resource CryptoQuant, as of April 28, approximately 86.9% of Bitcoin is in profit.
Historically, when this indicator rises to the 85-90% range, it typically marks a shift from healthy optimism among traders to speculative euphoria.
For example, during the period from October to December 2024, the price of Bitcoin rose from around $80,000 to over $100,000, coinciding with the profitable supply of Bitcoin increasing from below 80% to as high as 99%.
In a post on April 28, CryptoQuant analyst DarkFrost cautioned that the euphoria phase for Bitcoin may not last long, as holders begin to realize profits, which could lead to a sharp correction.
Bitcoin reached a historical high of nearly $110,000 in January, with its profitable supply hitting 99%. However, the cryptocurrency subsequently fell by more than 30%. Data shows that similar profit-taking behavior in the past has led to price corrections.
“Currently, the profitable supply has rebounded to over 85%, which is quite positive,” DarkFrost stated, noting that its recovery from a recent low of 75% outperformed the 45-50% lows observed during bear market corrections.
Additionally, Bitcoin's profitable supply remains below 90%. Historically, when it exceeds 90%, profit-taking behavior among traders typically occurs, indicating that there is still room for Bitcoin's price to rise in the coming days.
DarkFrost pointed out:
“Of course, some levels are more 'comfortable' than others, but generally, an increase in profitable supply tends to drive bullish phases.”
According to Glassnode's indicator tracking, first-time buyers and momentum buyers of Bitcoin are actively accumulating, while profit-takers remain relatively quiet.
This means new demand is flowing in without significant sell-offs, which is a key factor in maintaining a strong rebound.
At the end of April, Bitcoin rebounded strongly from the $89,000–90,000 support zone, a key level in previous price action, further enhancing the likelihood of an upward move.
According to chart analyst CryptoCaesarTA, this area now acts as the “maximum buy” zone, with buyers actively stepping in to limit Bitcoin's pullback.
Below this, the $70,000–72,000 area remains untested, closely aligned with a long-term upward trend line. If Bitcoin faces a deeper correction, this area could become a key secondary support.
Currently, Bitcoin's resilience above $90,000 keeps bullish sentiment strong.
Breaking through the psychological barrier of $100,000 could pave the way for new historical highs of $110,000–115,000, CryptoCaesarTA noted. This upward target aligns with previous resistance highs and the so-called “weak high” area on the weekly chart.
Related: Bitcoin (BTC) “hot supply” approaches $40 billion, new investors flood in at $95,000
This article is for general informational purposes only and should not be considered legal or investment advice. The views, thoughts, and opinions expressed in the article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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