Bitcoin (BTC), the leading digital currency, has seen a 98% increase in the number of profitable holders. According to IntoTheBlock data, 98.9% of Bitcoin holders are currently "In The Money," suggesting a potentialbullish rally.
Nearly all Bitcoin holders in profit
Notably, this percentage represents 9.69 million BTC valued at $2.17 trillion. With this massive amount of Bitcoin purchased at a price below the current market value, there is likely no sell pressure on investors, as they are already in profit. It signals bullish sentiment on the Bitcoin market.
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The remaining 1.1%, or 218,530 BTC, is worth $4.11 billion "at the money." That is, they are not at a loss and purchased close to the current price of the asset.
Interestingly, there are currently no Bitcoin holders out of the money. This paints a strong bullish market for the flagship cryptocurrency.
As of press time, Bitcoin is exchanging for $109,885.92, representing a 1.69% increase in the last 24 hours. The coin had soared to $110,541.46 in earlier trading sessions as it looked to flip its all-time high (ATH) of $111,970.17. Its price is less than 2% away from surpassing this level. Investors are also active, and trading volume has increased by 30.62% to $60.96 billion.
Can BTC overcome volatility on road to $120,000?
All the metrics indicate a significant potential rally. The high percentage "In the Money" reflects strong market confidence. It suggests that traders are positioned for price stability and a possible increase if BTC consolidates between $108,500 and $110,500.
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Such a setup could see the coin break out above $112,000 if trading volume remains high up in the green zone. With market sentiment aligning, Bitcoin might well be on its way to setting a new ATH near the $120,000 price level.
The road to $120,000, however, depends on Bitcoin's ability to overcome volatility. If it fails to break resistance at $112,000, this could trigger a correction and a slip to $105,000.
