Bitcoin: Supply in Profit Dips, BTC Price Faces Critical Support Test

The Bitcoin market is currently navigating a critical period, with recent analysis from Swissblock highlighting a significant shift in a key on-chain metric: the percentage of BTC supply held at a profit. This figure has decreased to approximately 91%, a notable reduction from the unsustainably high levels observed earlier in the week. This adjustment suggests a potential market rebalancing that warrants close attention from investors and analysts alike.

• Bitcoin’s supply held in profit has decreased to approximately 91%, indicating a potential market rebalancing.
• The market’s stability is largely dependent on Bitcoin maintaining its critical support zone between $12,500 and $14,000.
• Historical market patterns suggest that a high concentration of profitable accounts, without strong upward momentum, often precedes price corrections.
• Data from Glassnode shows the percentage of BTC in profit peaked above 97% earlier this year before cooling to its current level.
• The resilience of this price range is considered fundamental for sustaining Bitcoin’s current upward trajectory into the final quarter of 2025.

Market Dynamics and Support Levels

This recent decline in profitable supply could signal a healthy market correction, provided Bitcoin successfully defends its crucial support zone, strategically positioned between $12,500 and $14,000. Historical market patterns, as previously observed, indicate that a high concentration of profitable accounts, absent robust upward momentum, frequently precedes price corrections. Should a significant wave of profit-taking materialize, pushing the price decisively below this vital support, the market paradigm could transition from a strategic investment environment to a more tactical one, necessitating accelerated decision-making and heightened risk management strategies.

Data Insights and Trend Continuation

Data from Glassnode, which meticulously tracks the percentage of BTC supply in profit, vividly illustrates this dynamic. After reaching a peak above 97% earlier this year, the metric has now receded to a level Swissblock characterizes as a “critical zone for bull trend continuation.” Clients utilizing Swissblock’s specialized services, including @bitcoinvector and @altcoinvector, have been closely monitoring this specific price range for several weeks. Its sustained resilience is deemed fundamental for maintaining the current upward trajectory into the final quarter of 2025, thereby reinforcing broader buyer confidence. Conversely, a definitive breach below this crucial level could prompt a significant shift in market sentiment towards a more defensive investment posture.

Outlook and Investor Sentiment

As market participants closely monitor for confirmatory signals around these pivotal levels, the outcome will undoubtedly shape Bitcoin’s near-term price action and broader investor sentiment. This will, in turn, influence strategic capital allocations across the rapidly evolving digital asset landscape.