The percentage of Bitcoin supply in profit has continued to rise amid the recent market rebound, as analysis identifies what this might mean for prices.
The resistance at $95,000 has been a major obstacle to Bitcoin’s renewed bullishness. For context, the premier asset has hovered around the price mark since Friday, failing at each attempt to recapture higher prices.
Nonetheless, CryptoQuant data cited by analyst Darkfost shows that Bitcoin holders have benefited from the recent rebound. The percentage of Bitcoin supply in profit has surpassed 90%, with data from IntoTheBlock confirming it stands exactly at 91% at the time of writing.
Bitcoin Supply in Profit Shows Market Now in Euphoria Stage
The Tuesday analysis from Darkfost, a prominent technical analyst and verified CryptoQuant author, highlights that a Bitcoin supply profit of above 90% signals that the asset is now in the euphoria stage of the cycle. For the uninitiated, this phase is the final stage in every bull cycle, according to Wall Street’s Cheat Sheet, and is characterized by intense market upsides.
Notably, the supply of Bitcoin in profit dropped close to a crucial level of 75% during the last price corrections, with CryptoQuant identifying that a fall below this level would have triggered higher profit-taking.
Meanwhile, the analysis indicated that the current Bitcoin supply profitability is not bad. In fact, it is good for the market, as investors are not under pressure to sell their holdings due to uncertainties.
Interestingly, entering the euphoria stage could spark a Bitcoin rally to new all-time highs, as previous cycles have shown, reinstating the positivity that comes with this phase of the bull cycle.
Remarkably, analysts at Standard Chartered have predicted a surge to $120,000 by the end of Q2 2025, with other commentators projecting a range of between $200,000 and $250,000 by the end of the year.
Analysis Calls for Caution Amid Excitement
While positive price actions accompany the euphoria phase, CryptoQuant warns of a possible correction. It noted that this stage of the cycle is usually temporary and followed closely by a short to mid-term price capitulation.
Meanwhile, an accompanying chart supports this theory, highlighting that Bitcoin has usually retraced extensively after each euphoria phase. The data shows that this has happened in the last three Bitcoin bull cycles, with the Bitcoin supply in profit dropping to at least 50% each time, as is typical in a bear market condition.
Furthermore, while the specifics on the end of the euphoria stage remain uncertain, Ki Youn Ju, the CEO of CryptoQuant, earlier suggested that the phase typically lasts between three and twelve months.
At the time of writing, BTC is trading at $94,893.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
