The price of Bitcoin recorded a significant increase over the past 24 hours, temporarily exceeding the threshold of $97,500, driven by news of the United States and China planning imminent trade talks, which may include discussions to ease some tariffs imposed between the two sides.
This rise has positively reflected on investors, as data from 'IntoTheBlock' showed that the percentage of Bitcoin holders currently facing paper losses has dropped to zero, while the percentage of those in profit reached 95%, and those at breakeven made up 5%.
Data also indicates that 75% of current investors have held Bitcoin for more than a year, while 21% entered during the past year, and newcomers in the last thirty days represent only 4%.
Despite this recovery, Bitcoin remains below its all-time high of around $110,000 in mid-January.
However, this gap has recently narrowed, amid expectations of reaching new peaks soon.
Analyst 'CRYPTOWZRD' believes that the currency is in a strong upward trend, expecting it to reach $150,000 in the coming months.
In contrast, 'KALEO' went further predicting a surpass of $500,000, while 'CZ' suggested the possibility of reaching a price of one million dollars.
But this optimism is not without signs of concern.
While a recorded percentage of 0% paper losses seems positive, it may indicate that the market has reached a saturation phase, as happened previously in October 2024, when the profitability percentage was similar and was followed by a rapid correction from $69,000 to below $65,500.
Similar patterns were repeated in March and September of the same year, reinforcing the likelihood of a scenario repeat.
Additionally, the Relative Strength Index (RSI) – a technical tool used to measure the speed and volume of price movements – shows signals that call for caution.
With a level of 66, it is approaching the threshold of 70, which is usually considered a signal for Bitcoin entering overbought territory, potentially paving the way for a downward reversal in direction.
The company 'CryptoWaves' described this development as a sell signal.
Therefore, although the overall trend appears bullish, caution remains necessary in light of technical indicators and historical precedents that may signal potential corrections soon.
