Almost the previous month, Bitcoin has increased by almost 40%, and on November 13, it hit a new all-time high of over $92,000.
Profit-taking activity is still fairly modest, though, suggesting that there is still room for growth before the market runs out. Profit-taking volumes are far lower than in previous all-time high cycles, according to blockchain analytics company Glassnode.
According to Glassnode’s report released on November 12, “since entering this latest ATH discovery phase, we’ve observed $20.4 billion in realized profits.” Prior to demand depletion signaling corrections, similar phases have historically seen monthly profit realizations between $30 billion and $50 billion.
Furthermore, since November 5, when Bitcoin shattered its previous record, daily profit volumes have averaged $1.56 billion. This amount represents around half of the profit volumes seen during past cyclical ATH peaks, when daily realized profits topped $3 billion.
More than 95% of Bitcoin’s supply is profitable.
A crucial sign of market exuberance, the Glassnode research also showed that more than 95% of the Bitcoin supply in circulation is currently profitable. Historical trends indicate that these levels typically hold for approximately 22 days before corrections occur.
“The current rally has held this high-profit level for 12 days in a row, highlighting the positive sentiment of the market while also raising the prospect of a correction in the future based on historical trends.”
Although the total volumes are still far below historical peaks, both short- and long-term investors are helping to realize profits in terms of profit-taking dynamics. Glassnode, meanwhile, pointed out that a spike in institutional demand and the positive outcome of the U.S. presidential election were the main drivers of Bitcoin’s recent run to a new all-time high.
Bitcoin recorded its biggest-ever weekly price gain of $11.6k after the election, which indicated a more pro-crypto position under the new administration. This price increase significantly above historical averages and indicated strong positive momentum. Additionally, institutional interest in Bitcoin has grown; in the past 30 days, U.S. spot ETFs have added $6.8 billion in assets under management, while CME futures open interest has increased by $7.6 billion. Coinbase’s Daily Cumulative Volume Delta (CVD) also hit $143 million.
The price of Bitcoin, which is currently at $87.5k, is getting close to the upper statistical band of $94.9k, which frequently indicates more sell-side pressure, according to the research. The paper stated that keeping an eye on these bands’ proximity, particularly the upper and middle bands, can reveal times when market demand is high and indicate how keen new investors are to join the market during rally phases.
Analysts predict more profits.
In the coming months, analysts and traders continue to expect more momentum as Bitcoin consolidates close to all-time highs.
Robert Kiyosaki, a pro-Bitcoin author, stated that he will keep purchasing Bitcoin until it hits $100,000. He posted on X (previously Twitter) that now was not the time to become avaricious. According to Chris from WealthSquad, “We’ll see how obvious this opportunity was when Bitcoin crosses gold’s market cap and reaches $500k+.” Chris also highlighted the long-term potential of Bitcoin.
In the meantime, Anthony Pompliano emphasized how Bitcoin can be used as a hedge against the US national debt, which just rose by $850 billion. “Now, the debt and the price of Bitcoin are competing for supremacy,” he said. Swan Bitcoin CEO Cory Klippsten also discussed Bitcoin’s resilience. “It’s amazing that Bitcoin is still up here after pumping so aggressively over the weekend on low volume. Exchange. combining. He wrote on X, “Building price memory in this rarified air.”
The Bottom Line
With its most recent all-time high of around $90,000, Bitcoin may be starting a long upward trend.
The market exhibits indications of unrealized potential since profit-taking activity is still below historical levels and institutional demand is fueling momentum. In addition, traders and analysts are bullish, predicting that Bitcoin will soon surpass $100,000 and eventually even overtake the market capitalization of gold.
This article will conclude by reminding readers of the unpredictability of financial markets. When experts estimate the price of Bitcoin, they may be mistaken. As a result, it’s critical to conduct your own research before making an investment and to never risk more than you can afford to lose. Even the most knowledgeable and seasoned players might be humbled by the erratic price swings.
