{"id":63014,"date":"2025-04-30T06:30:24","date_gmt":"2025-04-30T06:30:24","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=63014"},"modified":"2025-04-30T06:30:24","modified_gmt":"2025-04-30T06:30:24","slug":"bitcoin-supply-in-profit-rises-above-85-is-euphoria-setting-in","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=63014","title":{"rendered":"Bitcoin Supply in Profit Rises Above 85%\u2014 Is Euphoria Setting In?"},"content":{"rendered":"

Bitcoin continues its gradual recovery, currently trading above the $94,000 level at the time of writing. This upward trend follows a recent correction<\/a> that pushed prices down earlier this month. Despite the recent gains, Bitcoin remains about 12.7% below its all-time high set in January.<\/p>\n

While investors monitor price resistance levels around the psychological $100,000 mark, on-chain metrics are beginning to show significant changes in market behavior that may influence short- and mid-term sentiment. A key development recently highlighted<\/a> is the rising proportion of the Bitcoin supply that is currently in profit.<\/p>\n

As the market edges closer to historic euphoria thresholds, some analysts suggest that while this trend may support continued bullish movement<\/a>, it could also introduce volatility as market participants assess when to lock in gains.<\/p>\n

The shift in profitability levels is also being evaluated alongside other indicators such as leverage and RSI behavior, which are offering mixed signals.<\/p>\n

Bitcoin Supply in Profit Nears Euphoria Levels<\/h2>\n

CryptoQuant analyst Darkfost shared a recent outlook on Bitcoin\u2019s on-chain dynamics, emphasizing the behavior of the \u201csupply in profit\u201d metric.<\/p>\n

According to the analyst, the supply in profit, meaning the percentage of Bitcoin in circulation currently valued higher than its purchase price, has climbed back above 85%. This metric fell to around 75% during the last correction<\/a> but has now recovered in line with the recent price rebound.<\/p>\n

Historically, supply in profit levels above 90% have coincided with euphoric phases in past market cycles. While this level has yet to be reached in the current cycle, the upward trajectory<\/a> suggests it may be approaching.<\/p>\n

Darkfost noted that such phases often trigger accelerated price rallies, but also tend to precede short- to mid-term pullbacks. The analyst emphasized how far sentiment has shifted from recent lows:<\/p>\n

It\u2019s also worth noting that during past cycles, the lowest supply in profit levels were around 45\u201350%, which corresponded to deep bear market conditions.<\/p>\n

Notably, in this context, monitoring this metric may be important for anticipating potential trend reversals or periods of elevated volatility.<\/p>\n

Leverage Ratio and RSI Indicate Reduced Market Aggression<\/h2>\n

In a separate post, another CryptoQuant analyst, Crypto Lion, addressed<\/a> the behavior of the leverage ratio in combination with relative strength index (RSI) data.<\/p>\n

The analyst referenced a custom metric developed by CryptoQuant that multiplies RSI by an open interest-to-reserve ratio. This approach is designed to assess speculative positioning across the market.<\/p>\n

Crypto Lion observed that RSI swings are currently higher than they were during the 2021 summer period, though leverage dynamics suggest that the market is not currently as overheated<\/a>.<\/p>\n

According to the post, the market appears to be slowly decoupling from aggressive leverage, potentially signaling a shift toward more organic spot-driven movement. The analyst concluded:<\/p>\n

I am concerned about what will happen after the next high, whether the original indicator was declining or not, which is not surprising.<\/p>\n

Featured image created with DALL-E, Chart from TradingView<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin continues its gradual recovery, currently trading above the $94,000 level at the time of writing. This upward trend follows a recent correction that pushed prices down earlier this month. Despite the recent gains, Bitcoin remains about 12.7% below its all-time high set in January. While investors monitor price resistance levels around the psychological $100,000 […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-63014","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/63014"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63014"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/63014\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}