Bitcoin Supply has achieved a remarkable milestone, with over 99% of the circulating supply now held at an unrealized profit. This achievement highlights the market’s robustness and has sparked discussions about potential price movements.
Recent gains in Bitcoin’s price have not only boosted market confidence but also led to a significant Bitcoin Supply milestone. As of now, nearly 99.3% of all Bitcoin is in profit, according to data from the on-chain analytics platform, CryptoQuant. This development has caught the attention of market analysts and traders alike.
Bitcoin Supply and Potential Price Correction
Historically, when Bitcoin Supply in profit exceeds 99%, the market often experiences short-term corrections. Analyst Ted Pillows, in a recent analysis, notes that such conditions have previously led to market drawdowns ranging from 3% to 10%. These corrections are considered necessary “cooling phases,” allowing the market to reset before continuing its upward trend.
Rekt Capital, another notable analyst, concurs with this perspective. In his analysis, he mentions that Bitcoin’s price often experiences pullbacks of around 13% following its peak at all-time highs, such as the recent level of $124,000. Based on these insights, Bitcoin prices may dip to between $106,000 and $109,000 before finding robust support for the next upward movement.
Bitcoin Price Outlook and Market Trends
Currently trading at $122,246, Bitcoin has seen an 11.73% rise over the past week. Despite some cautionary outlooks, October historically remains a bullish month for Bitcoin, with an average gain of 21.89% and a median gain of 21.20%. Analysts from Coincodex have noted the prevailing bullish sentiment, supported by the Fear & Greed Index reaching a level of 71, signifying extreme greed.
Looking ahead, short-term projections suggest Bitcoin could rise to $130,994 within five days. However, a subsequent retracement to approximately $126,535 is expected. Despite these fluctuations, forecasts remain optimistic, predicting Bitcoin to reach $140,009 by the end of 2025.
With a market cap of $2.43 trillion, Bitcoin continues to dominate the cryptocurrency space, holding a market dominance of 58.4%. This strong market position underscores the confidence investors have in Bitcoin’s long-term potential.
The recent surge in Bitcoin Supply in profit is a testament to the cryptocurrency’s resilience and the market’s renewed optimism. However, investors should remain vigilant, as historical trends suggest potential corrections on the horizon.
