Bitcoin Supply In Profit Rises To 83.6% – Market Momentum Building Again

Bitcoin (BTC) is showing renewed strength, reclaiming the $115,000 level after weeks of volatility and uncertainty. Bulls are attempting to build momentum for a potential impulse move higher, aiming to confirm a sustained bullish structure after the recent consolidation phase.

On-chain data continues to reveal a clear and repeating pattern tied to investor behavior and market cycles. Historically, when the percentage of Bitcoin supply in profit climbs above 95%, the market tends to enter an overheated phase, often leading to sharp corrections. These pullbacks serve as natural cooling periods, resetting sentiment and liquidity before the next major leg up.

Interestingly, each correction cycle has shown consistent bottoming zones around the 75% threshold, where long-term holders reaccumulate and market confidence begins to rebuild. More specifically, data highlights profit supply lows of 73% in September 2024, 76% in April 2024, and a recent rebound from 81%, signaling a potential mid-cycle recovery phase.

According to top analyst Darkfost, the percentage of Bitcoin supply in profit has started to climb again, currently standing at 83.6%. This steady rise indicates that a growing share of Bitcoin holders are once again sitting on unrealized gains — a trend that often reflects improving sentiment and renewed market confidence.

Darkfost notes that this level can be interpreted as encouraging, suggesting that investors are willing to hold their BTC instead of realizing profits, anticipating further upside in the near term. Historically, such behavior has been characteristic of mid-cycle recovery phases, when fear starts to fade and accumulation resumes across both retail and institutional segments.

This stage of the cycle is considered healthy for rebuilding momentum, as it allows the market to stabilize after large corrections. Holders who previously capitulated often reenter at this stage, while long-term participants strengthen their positions, creating a more resilient market structure.

However, Darkfost cautions that once the supply in profit surpasses 95%, it typically signals overheated market conditions — a point where euphoria tends to replace rational conviction. In such phases, Bitcoin historically faces increased volatility and sharp corrections as overleveraged traders and short-term speculators take profits.

Bitcoin (BTC) is showing renewed bullish momentum, trading around $115,443 and successfully reclaiming key short-term support levels after weeks of consolidation. The daily chart highlights a strong recovery structure, with BTC breaking above both the 50-day and 100-day moving averages, signaling a shift in short-term market sentiment.

The next critical test lies at $117,500, a historical resistance zone that previously rejected multiple attempts in September and early October. A clear breakout and daily close above this level would likely confirm an impulse continuation toward $120K–$125K, opening the door for a more sustained uptrend.

Momentum indicators suggest strengthening buying pressure, while the recent bounce from the 200-day moving average near $107K underscores the market’s resilience. This level acted as a springboard for the current rally, aligning with the broader pattern of accumulation seen on-chain, where investor profitability is rising steadily.

However, BTC remains within a range-bound structure, and rejection at $117.5K could trigger short-term consolidation back toward $111K–$112K. Overall, Bitcoin’s technical outlook appears constructive — if the bulls can sustain above $115K and confirm strength above $117.5K, the market could transition into a new bullish leg, supported by improving investor sentiment and on-chain health.

Featured image from ChatGPT, chart from TradingView.com