Bitcoin\u2019s price gain in the last week has resulted in multiple other positive developments, ranging from a surge in ETF inflows to a bullish change in option trading calls, all signifying a renewed market confidence.\u00a0In particular, over 99% of Bitcoin\u2019s circulating supply is now held at an unrealized profit, a milestone that underscores the market\u2019s strength. However, historical trends suggest that such conditions often precede a major price correction.\n<\/p>\n
In an X post<\/a> on October 4, market analyst Ted Pillows shares an important cautionary insight on the present Bitcoin market. Using data from the on-chain analytics platform CryptoQuant, nearly 99.3% of all Bitcoin supply is now in profit following the asset\u2019s bullish resurgence in the first week of October.<\/p>\n Notably. With Bitcoin currently trading around $122,000, this milestone reflects the present overwhelming profitability of holders across the network. However, this is also a rare event that has historically preceded short-term market corrections.<\/p>\n According to Pillows, the last three times Bitcoin\u2019s \u201csupply in profit\u201d ratio climbed above 99%, the market experienced brief corrections ranging from 3% to 10%. These drawdowns may be seen as \u201ccooling phases,\u201d allowing overheated momentum to reset before prices resumed their upward trend.\u00a0<\/p>\n Interestingly, in a separate X post, a fellow analyst with the username Rekt Capital shares<\/a> a similar viewpoint. In particular, Rekt Capital explains that Bitcoin\u2019s rejection at its all-time high around $124,000 has been consistently followed by a 13% price pullback. Based on these analyses, Bitcoin prices could be in potential danger of slipping to between $106,000 \u2013 $109,000 before finding a potential support zone for the next leg upward.\n<\/p>\n At the time of writing, Bitcoin trades at $122,246 after a price gain of 11.73% in the past seven days. Despite the strong cautionary predictions, historical data prove October to be a generally bullish trading month with an average gain of 21.89%\u00a0 and a median gain of 21.20%.\u00a0<\/p>\nBitcoin Price Outlook<\/h2>\n