94% of Bitcoin holders in profit signal potential pullback

Bitcoin’s (CRYPTO:BTC) recent rally has pushed the majority of its holders into profit, with over 94% of Bitcoin supply now “back in the money,” according to data from CryptoQuant analysed by Axel Adler Jr. 

This trend suggests heightened profit-taking pressure at the $69,000 price level, which has historically triggered market corrections. 

The data indicates that most of the profitable Bitcoin was acquired around the $55,000 mark. 

Independent analyst Checkmate highlighted that this profit surge has rewarded short-term holders, reinforcing a “buy-the-dip” sentiment, which may encourage further buying behavior if the price consolidates. 

Despite the optimistic outlook, past instances show that such high profitability levels often precede notable price drops. 

In September, when a similar profit percentage was reached, Bitcoin experienced an 8.7% decline. 

Earlier this year, Bitcoin also saw a 23% correction after reaching its all-time high of $73,800 in March. 

Currently, Bitcoin is facing stiff resistance around the $69,000 mark. 

Japanese trader Jusko Trader emphasised that the $67,300 to $69,400 range remains a key barrier, but described the current pullback as a “healthy correction” amidst continued bullish momentum. 

The trader added, “BTC’s bullish momentum is more. These minor corrections are healthy for major pullback as they bring more/new cash flow.” 

Bitcoin’s potential breakthrough could impact over $1.65 billion worth of leveraged short positions, which stand to be liquidated if the price breaches $68,000, based on CoinGlass data. 

Moreover, recent inflows into US-based spot Bitcoin ETFs have provided additional support. 

Since October 11, these ETFs have seen cumulative inflows reach $21.2 billion, indicating growing investor interest. 

While Bitcoin’s current trend suggests resilience, traders are cautiously eyeing this critical price zone, wary of possible corrections driven by profit-taking or further resistance at higher levels.

At the time of writing, the Bitcoin price was $67,056.19.