More than 85% of the traded supply of Bitcoin is currently making profits, indicating strong investor confidence and upward trends.
As Bitcoin approaches 90% of its profit supply, a phase of euphoria may emerge in the market, often followed by short-term corrections.
Bitcoin’s funding rate is neutral, indicating market suspense. Bitcoin is currently trading below the resistance level at USD$95,078, indicating potential price fluctuations.
Series data shows that more than 85% of the circulating supply of Bitcoin is currently profitable. This is a historical bullish signal, but it often signals the beginning of phases of euphoria in market cycles.
Bitcoin has entered bull territory, but analysts warn of a possible decline Bitcoin’s profit rate measures the percentage of coin holders who acquired their assets at prices below the current market value. When this figure rises, it indicates broad investor confidence and strong capital flows into the asset.
In a new report, Crypto Quant analyst DarkVost found that more than 85% of the traded supply of Bitcoin (BTC) is currently making a profit. Although this trend represents a bullish signal, it has a downside.
Darkovost wrote: “A large part of supply is not a bad thing, quite the opposite. Of course, there are certain levels that are more ‘comfortable’ than others, but overall, the increased supply of profits fuels bullish periods.”
According to the analyst’s note, the market is now entering euphoria, a phase that appears when the supply of profits approaches or exceeds 90%. These levels, though bullish, often coincide with local market highs as traders start taking profits, triggering short- and medium-term corrections.
Bitcoin is under resistance anticipating and stimulating volatility
Another attraction for short-term Bitcoin prices is the $94,000 level, thanks to a large number of buy orders in the Binance futures order book.
Historically, when the earnings supply crosses the 90% threshold, it has consistently provoked periods of euphoria, and we are now approaching that level. However, these periods may be short-lived, often followed by short- to medium-term corrections.
Interestingly, the Bitcoin funding rate remains relatively balanced, suggesting that the market is in a state of suspense. At the time of publication, the currency funding rate is 0%.
The funding rate is a periodic payment between traders in the perpetual futures markets, used to keep contract prices in line with the spot market. As with Bitcoin, when the asset’s funding rate is 0%, this indicates a neutral trend in the market, where neither long nor short positions dominate.
This suggests that bitcoin investors are waiting for a catalyst to present a clearer trend. This neutral market trend and rising earnings supply pave the way for potential price fluctuations in the near term.
Bitcoin solidifies below resistance level
At the time of publication, Bitcoin is trading at USD$95,125, settling below the key resistance level at USD$95,971. Despite recent market volatility, demand for Bitcoin among spot market participants remains significant, as evidenced by the Relative Strength Index (RSI), which currently stands at 68.21.
The Relative Strength Index (RSI) measures the overbought and oversold status of an asset in the market. Its range is between 0 and 100, with values above 70 indicating that the asset is overbought and ready for the price to fall. In contrast, values below 30 indicate that the asset is oversold and may see a rebound.
Bitcoin Supply faces crucial battle near opening of 2025
Bitcoin is constantly trying to surpass important resistance levels, but the bulls are far from over, with the annual opening of 2025 a key battleground.
Bitcoin’s price, which hit $94,946, breached three major resistance levels in a week, but its biggest recovery battle continues.
Analysis from sources, including renowned trader and analyst Ricket Capital, confirms that the price of Bitcoin is moving in critical territory for bulls.
Bitcoin broke through the “triple resistance”. RIC Capital revealed that the last weekly Bitcoin candlestick saw three full resistance lines restored.
In addition to the horizontal weekly resistance, the Bitcoin/USD pair crossed a downtrend that lasted for several months, as mentioned by Cointelegraph earlier, as well as the 21-week Exponential Moving Average (EMA).
Ricket Capital commented in a post on X while uploading an illustrative chart: “Bitcoin broke through all these levels last week”.
Another post highlights Bitcoin surpassing both the 21-week and 50-week exponential moving averages, which usually provide support to the bull market.
Rekt Capital summed up: “Bitcoin recorded a repeating price history for mid-2021, as its range formed by the two exponential moving averages of the bull market broke”.
However, some argue that the real test of Bitcoin’s current price recovery lies elsewhere.
In contrast, values below 30 indicate that the asset is oversold and may see a rebound. In his latest YouTube video analysis dated April 28, Keith Alan, co-founder of Material Indicators, drew attention to Bitcoin’s ongoing battle to regain its 2025 annual opening price.
At around $93,500, this level is the main focus going forward, with a short drop below it after the weekly close, worrying Alan.
