99.99% Of All Bitcoin Addresses In Profit — What It Actually Means For BTC?

The Bitcoin market faces a period of uncertainty currently after hitting a new ATH presenting a period of dilemma for traders whether to take profits or still hold for more.

The “Percentage of Addresses in Profit vs. Loss” chart for Bitcoin indicated that nearly all addresses were at the time in profit, a rare occurrence historically associated with local market tops.

This metric highlighted that whenever 100% of addresses have been in profit, the peak was typically in, lasting no more than two days before a correction occurred.

Bitcoin breaking its ATH, suggested that a minor correction could soon follow, reflecting patterns seen in previous cycles. In the bull runs of 2017 and the 2020/2021 period, the percentage of profitable addresses fluctuated between 80% and 100%, indicating sustained bullish momentum.

However, during the peak of late 2021, the percentage didn’t sustain at 100% for even a day, signaling immediate profit-taking and a sharp reversal. The behavior associated investor strategy: buy during periods of losses and sell in profit phases to capitalize on volatility.

If the trend of high profitability persists while Bitcoin prices remain elevated, it might indicate increased risk exposure among investors, often preceding a significant market correction.

The MOVE Index Suggests “BTC Isn’t Done Yet”

The MOVE Index, which gauges U.S. Treasury yield volatility, dropped following recent political events, indicating reduced financial market uncertainty. This decline suggested an impending correction to align it with its historical norms.

Concurrently, the Federal Reserve’s recent 25 basis point rate cut likely contributed to lowering the Dollar Index (DXY), which remains high. A weaker dollar generally favors risk assets like Bitcoin, as it lowers the opportunity cost of holding non-yielding assets.

The connection between lower MOVE and DXY levels suggested a favorable environment for risk assets supported by early signs from the Global Liquidity model, an indication of uptick in market risk appetite.

Despite the broader market’s focus on liquidity, Bitcoin showed resilience, gaining independently. The decoupling highlighted Bitcoin’s maturing status as an asset class and its attractiveness during times of decreased volatility and dollar weakness.

The environment may signal a bullish outlook for Bitcoin, potentially heralding a rewarding period for the cryptocurrency market as the year ends.

Is $50K the Next Focus When Bitcoin Peaks?

The Bitcoin presented a stark visual of a downturn following a period where nearly all BTC addresses were in profit. Historically, when a large percentage of addresses are in profit, Bitcoin tends to face corrections as investors capitalize on gains, leading to increased selling pressure.

Analysts Altcoin Sherpa predicted a fall from highs around $76.9K to below $54,000, supported by past behavior patterns. The chart illustrated strong resistance levels at about$76.9K, which Bitcoin failed to surpass.

The correction has the potential to deepen towards the $54K mark, a psychological and technical support level in bear market. The zone could serve as a stabilization point, attracting buyers looking for value, but further declines could be on the horizon if selling pressure persists.

Investors should monitor for consolidation or a continuation of the sell-off at the $50,000 level, which could determine the medium-term market direction.