Bitcoin Supply in Profit Reaches Key Historical Threshold

Bitcoin is currently consolidating below $115,000, maintaining support above $110,000. Recent price action indicates increasing selling pressure, making traders cautious about the next significant move.

Key points include:

Analyst Darkfost noted that Bitcoin's supply in profit has reached a historically critical threshold, which may indicate turning points in market structure.
A high percentage of coins in profit can fuel bullish momentum, while dropping below 90% often signals corrective phases.
The long-term average for supply in profit is approximately 75%, with levels exceeding 90% typically indicating strong bullish trends.
Bitcoin's current position near this threshold suggests potential upward movement if the profit supply stays elevated.

Bulls Struggle To Regain Momentum

Bitcoin is trading at $112,900 after rebounding from lows near $110,800. The momentum remains fragile following a rejection at $123,000 earlier this month, leading to a slip below both the 50-day and 100-day moving averages, which now act as resistance between $115,700 and $116,600.

Additional insights:

The 200-day moving average at $111,600 is providing support; maintaining this level is crucial to avoid deeper retracements toward $108,000.
If buyers can defend this support while gaining momentum, there could be a relief rally toward the mid-$115K range.
Failure to reclaim the moving averages may expose Bitcoin to further downside pressure.

Bitcoin remains in a consolidation phase, with the next move likely determining market stability or a decline.