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The cryptocurrency landscape experiences a seismic shift as Bitcoin’s profitable supply approaches 90%, indicating strong buyer interest and a potential rally toward $115,000.
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As on-chain analysis suggests, new demand from buyers is outpacing sell activity, laying the groundwork for further price increases.
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According to analyst DarkFrost from CryptoQuant, the current profit-reaching phase may signal bullish market behavior, as evidenced by historical trends.
Bitcoin’s increasing profitable supply signals potential upward movement toward $115,000, reflecting robust buyer confidence and market momentum.
Bitcoin’s Supply Hitting New Highs: A Bullish Indicator
Current on-chain metrics reveal that as of late April, nearly 86.9% of Bitcoin (BTC) is operating in profit. This percentage, as reported by CryptoQuant, serves as a notable bullish indicator, traditionally marking a sentiment shift from cautious optimism to speculative frenzy.
Historically, when Bitcoin’s profitable supply has soared into the 85-90% range, significant price movements have often followed. For instance, between October and December 2024, Bitcoin surged from approximately $80,000 to surpass $100,000, coinciding with its profitable supply rising to as high as 99%.
Bitcoin percent supply in profit. Source: CryptoQuant
As highlighted by DarkFrost, a CryptoQuant analyst, although bullish movements can lead to profitable outcomes, they may also result in sharp corrections as traders begin to realize their gains. For instance, after establishing a peak around $110,000 in January, Bitcoin witnessed a drop exceeding 30%. History shows that when profit levels soar, a tendency towards profit-taking often follows.
“Currently, the supply in profit has climbed back above 85%, which is fairly positive,” DarkFrost mentioned, indicating a recovery from a prevailing low of 75%. He emphasized that this rebound is favorable compared to 45-50% lows that often accompany bear markets.
Moreover, remaining under the 90% threshold indicates additional upward potential for Bitcoin, as surpassing this level has previously been associated with profit-taking, leaving room for further growth.
DarkFrost elaborated:
“Of course, there are certain levels that are more ‘comfortable’ than others, but generally, an increase in the supply in profit tends to fuel bullish phases.”
Augmenting this bullish outlook, metrics from Onchain suggest that Bitcoin’s First Buyers and Momentum Buyers are consistently accumulating while profit-taking is relatively muted, showcasing a sustainable demand ecosystem that could bolster price rallies.
BTC relative strength index of cumulative supply per cohort. Source: Glassnode
This active buying without a corresponding surge in selling creates a conducive environment for maintaining and potentially enhancing Bitcoin’s price trajectory, reinforcing DarkFrost’s perspective.
Indicators Point to a Potential Target of $115,000
In assessing the behavior of Bitcoin’s price action, late April observations noted a decisive bounce from the $89,000–$90,000 support zone. This level, considered a pivotal horizontal support, effectively strengthens the case for further bullish momentum.
Crypto chartist CryptoCaesarTA labels this area as a “max buying” zone, where buyers are actively curbing Bitcoin’s downward fluctuations.
BTC/USD weekly price chart. Source: TradingView/CryptoCaesarTA
A deeper examination reveals that the untested $70,000–$72,000 region aligns closely with a long-term upward trendline, indicating potential robust support should Bitcoin experience deeper declines.
Currently, the strength shown by Bitcoin above the $90,000 mark suggests that bullish sentiment remains strong among traders.
As reported almost universally, breaching the critical psychological barrier of $100,000 could unlock upward movement toward new all-time highs, with targets of $110,000 to $115,000 appearing feasible based on historical resistance levels and the analysis of weak high zones.
Conclusion
In summary, Bitcoin’s current status—nearly reaching 90% profitable supply—coupled with active demand from new buyers, presents a compelling bullish narrative as the cryptocurrency gears up for potential price movements toward $115,000. As historical patterns suggest, traders should remain vigilant for any market corrections, but the indicators presently favor continued bullish momentum in the days ahead.
