Despite the unclear market direction, the overall profit position of Bitcoin continues to rise. On-chain data shows that currently over 85% of the circulating supply of Bitcoin is in profit, meaning most investors hold coins with positive returns.
Such data is often seen as 'bullish signals', but it is also accompanied by the market entering an 'overheated phase (Euphoria Zone)' — that is, a short-term spike in coin prices, but the risk of subsequent pullbacks also increases.
Profit proportion has surpassed 80%, not far from the 'emotional peak'.
Bitcoin's 'Supply in Profit' has surpassed 85% (currently at 87.2%). While this is a positive signal indicating high market confidence and a strong bullish atmosphere, historical experiences also bring caution. Having a large portion of Bitcoin supply in profit is not necessarily a bad thing; rather, it often represents potential for price increases.
When this ratio approaches or exceeds the threshold of 90%, the market usually enters a 'overheated phase' (which is characterized by high investor sentiment and excessive expectations), and we are currently nearing this level. However, this 'overheated phase' is generally very short-lived, and is often followed by a 'short to medium-term correction'.
In other words, when the vast majority of people are realizing profits on their accounts, it is often also the time when smart money quietly takes profits.
The funding rate remains neutral, with a strong wait-and-see atmosphere.
It is worth noting that although the market's technical aspect is strong, from the perspective of the derivatives market, investors' short-term sentiment remains neutral. The funding rate for Bitcoin is currently at 0%, indicating a tug-of-war between longs and shorts, with no clear bias towards either side.
The funding rate is a mechanism used to adjust the price gap between perpetual contracts and spot prices. When the funding rate is positive, it indicates that longs will pay funding fees to shorts; if negative, it represents strong shorts; if at 0%, it means market sentiment is neutral, and investors enter a 'wait-and-see' state, awaiting the next catalyst for clearer direction.
The current combination of 'a large amount of chips in profit and a wait-and-see stance' often heralds violent fluctuations, indicating that any slight movement could trigger a wave of profit-taking, and investors should be on high alert.
Bitcoin still has room for upward movement.
Bitcoin is currently quoted at $94,575, still a distance from the key resistance level of $95,971. From a technical perspective, there are still conditions for continued upward movement.
According to the technical indicator RSI (Relative Strength Index), Bitcoin is currently at 66.28, slightly below the common 'overheated threshold' of 70. A higher RSI value indicates stronger buying pressure, but if it exceeds 70, one should be cautious of pullback risks; conversely, below 30 may indicate a buying opportunity.
From the current index perspective, Bitcoin still has further room for growth. If buying pressure increases, there may be a chance to challenge $98,983 in the short term; however, if the selling force regains strength, a pullback to $91,851 cannot be ruled out.
Although the market direction is unclear, the overall profit position of Bitcoin continues to rise. On-chain data shows that currently over 85% of the circulating supply of Bitcoin is in profit, meaning most investors hold coins with positive returns.
Such data is often seen as 'bullish signals', but it is also accompanied by the market entering an 'overheated phase (Euphoria Zone)' — that is, a short-term spike in coin prices, but the risk of subsequent pullbacks also increases.
Profit proportion has surpassed 80%, not far from the 'emotional peak'.
Bitcoin's 'Supply in Profit' has surpassed 85% (currently at 87.2%). While this is a positive signal indicating high market confidence and a strong bullish atmosphere, historical experiences also bring caution. Having a large portion of Bitcoin supply in profit is not necessarily a bad thing; rather, it often represents potential for price increases.
When this ratio approaches or exceeds the threshold of 90%, the market usually enters a 'overheated phase' (which is characterized by high investor sentiment and excessive expectations), and we are currently nearing this level. However, this 'overheated phase' is generally very short-lived, and is often followed by a 'short to medium-term correction'.
In other words, when the vast majority of people are realizing profits on their accounts, it is often also the time when smart money quietly takes profits.
The funding rate remains neutral, with a strong wait-and-see atmosphere.
It is worth noting that although the market's technical aspect is strong, from the perspective of the derivatives market, investors' short-term sentiment remains neutral. The funding rate for Bitcoin is currently at 0%, indicating a tug-of-war between longs and shorts, with no clear bias towards either side.
The funding rate is a mechanism used to adjust the price gap between perpetual contracts and spot prices. When the funding rate is positive, it indicates that longs will pay funding fees to shorts; if negative, it represents strong shorts; if at 0%, it means market sentiment is neutral, and investors enter a 'wait-and-see' state, awaiting the next catalyst for clearer direction.
The current combination of 'a large amount of chips in profit and a wait-and-see stance' often heralds violent fluctuations, indicating that any slight movement could trigger a wave of profit-taking, and investors should be on high alert.
Bitcoin still has room for upward movement.
Bitcoin is currently quoted at $94,575, still a distance from the key resistance level of $95,971. From a technical perspective, there are still conditions for continued upward movement.
According to the technical indicator RSI (Relative Strength Index), Bitcoin is currently at 66.28, slightly below the common 'overheated threshold' of 70. A higher RSI value indicates stronger buying pressure, but if it exceeds 70, one should be cautious of pullback risks; conversely, below 30 may indicate a buying opportunity.
From the current index perspective, Bitcoin still has further room for growth. If buying pressure increases, there may be a chance to challenge $98,983 in the short term; however, if the selling force regains strength, a pullback to $91,851 cannot be ruled out.
