Bitcoin’s Bullish Potential: 80% Supply Still Profitable Despite Market Cooldown

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<a href="https://jpyxx.com/btc-usd/">Bitcoin</a> Market Cools After <a href="https://investment-policy.com/ath-usd/">ATH</a>: 80% Supply Still In Profit As Bullish Potential Grows

Bitcoin is currently maintaining its position above $82,000, demonstrating strength following several weeks of fluctuation. Yet, the bulls have yet to push past the crucial $88,000 barrier, leaving the market’s direction ambiguous. As no significant macroeconomic event looms on the horizon, financial markets are in a standstill, waiting for clear signals before making a move towards a new trend.

Certain experts are cautioning that Bitcoin might prolong its current drop due to the ongoing sluggishness in global economic circumstances. The ongoing trade disputes between the U.S. and China, potential inflation hazards, and tentative investor sentiment are all impacting overall market action, encompassing cryptocurrencies as well.

Based on information from CryptoQuant, about 80% of all Bitcoin is currently generating profits, whereas around 20% is experiencing losses. In the past, when this ratio climbs to between 95% and 98%, the market tends to become overheated, frequently leading to widespread selling as investors cash in their gains. At present, the situation suggests a cooling market, but it’s not yet indicative of full market exhaustion or capitulation.

As long as Bitcoin’s price remains between approximately $81K – $88K, traders can expect a period of fluctuating prices and uncertain direction for the near future.

Bitcoin Holds Firm Amid Trade Tensions

Bitcoin maintains its strength above the $82K mark, yet potential dangers persist due to strengthening economic challenges worldwide. The geopolitical situation between the U.S. and China is altering global trade forecasts, and apprehensions about tariffs and foreign policy are creating significant pressure on financial markets.

As inflation continues to decrease, there’s a growing concern about the instability of the U.S. stock market, which might prompt the Federal Reserve to shift its policy towards reducing interest rates, in order to prevent an economic recession. However, this situation may take some time to materialize, and global political events are changing rapidly.

For now, it seems that the structure of the Bitcoin market could be shifting. Top analyst Axel Adler uses data from CryptoQuant and the Pareto Principle as examples to explain the current mood in the market. According to this principle, a small portion (20%) of factors usually leads to a large proportion (80%) of outcomes. In the present situation, only 20% of Bitcoin’s supply is experiencing an unrealized loss, while 80% continues to be profitable.

Historically, when more than 95-98% of profits came from coins, markets tended to overheat, leading to substantial selling off, as indicated by the yellow bars in Adler’s chart. Following Bitcoin’s peak earlier this year, the market has cooled down and the metric is back within its typical range, suggesting consolidation instead of a collapse.

BTC Price Faces Resistance Amid Bearish Pressure

At the moment, Bitcoin is being traded at approximately $83,600. It couldn’t regain its 200-day exponential moving average (EMA) around $85,000, which suggests a rise in negative power among investors. This technical rejection indicates that bulls are finding it tough to gather enough steam for a decisive surge. Although there was an effort last week to push past the resistance level, the market remains trapped within a broad consolidation phase, and the overall feeling is becoming more cautious.

At the moment, I’m keeping a close eye on the $81,000 mark as a crucial line of defense. Maintaining above this zone is vital for upholding the current consolidation pattern and preventing another dip towards lower prices. If this support were to break, Bitcoin might face a more significant correction, possibly returning to the $75,000 range.

Moving forward positively, reaching and holding the $85K level is a potential starting point for a bullish turnaround. But to truly show strength, it’s crucial to surpass the $90,000 barrier – a level that would signal renewed confidence among buyers and contradict the recent negative trend.

For now, Bitcoin finds itself in a region that’s neither bullish nor bearish intensely, as it is being influenced by broader economic uncertainties and technical barriers that are making it tough for optimistic investors (bulls) to advance.

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2025-04-17 00:47