Quick Takeaways
- Over 85% of Bitcoin holders are currently in profit.
- Bitcoin is consolidating between $94,000 and $95,000.
- Technical indicators show mixed signals, hinting at trend fatigue.
- Institutional demand remains strong, with MicroStrategy buying over 15,000 BTC.
- A potential breakout above $98,000 could lead to a test of the $100K level.
Bitcoin Price Consolidates as Profit-Taking Looms
Bitcoin is currently consolidating in the $94,000–$95,000 range, with traders closely watching for signs of the next big move. While momentum remains generally bullish, technical indicators are flashing mixed signals. The Relative Strength Index (RSI) has climbed to 66, approaching overbought territory, while the Stochastic RSI points to potential trend fatigue. Despite this, the momentum and moving average convergence/divergence (MACD) indicators continue to lean bullish.
A sustained push by buyers could drive a breakout past the $98,000 resistance, paving the way for a potential retest of the much-anticipated $100,000 milestone. Conversely, if bearish pressure prevails and BTC falls below $89,000, a pullback to the $85,000–$87,000 zone could materialize.
On-Chain Data Signals Potential Euphoria
According to on-chain data from CryptoQuant, over 85% of Bitcoin holders are now in profit. This “supply in profit” metric, which recently rebounded from a low of 75%, is often considered a critical psychological and technical threshold. Historical trends suggest that when this metric surpasses 90%, markets may be entering a euphoric phase often followed by a correction.
CryptoQuant contributor Darkfost commented:
“Having a large portion of supply in profit is not a bad thing. It tends to support bullish trends — until it reaches euphoric levels.”
This highlights that while current metrics support a continued bullish trend, caution is warranted as the market edges closer to the euphoric zone.
Institutional Buyers Power the Rally
Institutional appetite for Bitcoin remains a significant catalyst behind the recent rally. U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $764 million in net inflows over the past week, according to SoSoValue.
MicroStrategy also deepened its commitment, purchasing 15,355 BTC for $1.4 billion, bringing its total holdings to over 553,000 BTC. In addition, a new $3.6 billion investment initiative called 21 Capital—spearheaded by Cantor Fitzgerald, SoftBank, Bitfinex, and Tether—is set to further bolster institutional interest.
Whether this wave of institutional demand can sustain Bitcoin’s momentum will be critical, especially as retail investors consider booking profits at current levels.
Conclusion: Euphoria or Correction Ahead?
While Bitcoin’s fundamentals remain strong and institutional support continues to grow, the high percentage of holders in profit could spark short-term profit-taking. With the market hovering near overbought conditions, traders and investors should stay alert. The coming days will likely determine whether Bitcoin breaks toward $100,000 or undergoes a healthy correction.