‘Cautiously Optimistic’ Metrics Suggest Bitcoin’s Next Leg Could Top $200K
The post ‘Cautiously Optimistic’ Metrics Suggest Bitcoin’s Next Leg Could Top $200K appeared on BitcoinEthereumNews.com.
Glassnode warns of potential demand exhaustion and profit-taking for Bitcoin, similar to past cycles where high profitability preceded price corrections. Analysts remain bullish on BTC, with predictions of a breakout from its multi-year channel, with technical targets ranging from $140,000 to $200,000. Bitcoin price stands strong as it holds above 106,000 and on-chain data shows increasing bullish signals but warns of a possible correction in the short term. The latest data reveals a sharp increase in the percentage of Bitcoin supply held in profit, raising market expectations for an explosive rally while stirring caution among analysts tracking historical patterns. Will Bitcoin Price Hit $200,000 Soon? On-chain analytics platform Glassnode estimates that nearly 96.7% of circulating Bitcoin is currently in profit, a notable climb from 87% just over a week earlier. The spike follows a historical pattern experienced in the past market cycles of an above-average level of profitability being accompanied by a spell of price instability. Furthermore, as reported by CNF, the Bitcoin whale distribution is on the rise. Source: Glassnode For example, in January this year, the percentage of profitable supply was up to 98.8%, which is the highest record that was immediately followed by a market pullback from $109,000 to $74,000. The rise in profit-taking potential is also mirrored in Bitcoin’s realized profit/loss ratio, which now stands at 2.8, a dramatic jump from 1.1 recorded on June 22. This indicator has now climbed above the high-risk band mark of 2.4, indicating a high realized profit by the people holding it. Source: Glassnode It “reflects strong market confidence,” Glassnode stated in its latest Weekly Market Pulse. However, they noted that “it hints at heightened risk of profit-taking and demand exhaustion if price momentum falls.” The report emphasized that the current cycle is marked by what it calls a “cautiously…
