Bitcoin Bull Run: 96% Supply in Profit & $112K Retest Point to $130K Target

Bitcoin finds itself at a critical juncture, marked by both robust technical support and an exceptionally high percentage of its circulating supply holding unrealized gains. This confluence of factors suggests the cryptocurrency is poised for its next significant price movement, prompting market participants to closely observe key levels for confirmation of continued bullish momentum.

• Bitcoin recently surpassed the $112,000 mark and is currently undergoing a crucial retest phase.
• The area around $112,500 has been identified by analyst Merlijn as a strategic “reload zone,” serving as a robust support level.
• An extraordinary 96% of Bitcoin’s circulating supply is presently “in profit,” according to Glassnode’s on-chain analysis.
• This “Percent Supply in Profit” metric has consistently remained above 90% for over a month, a threshold historically indicative of euphoric phases within sustained bull market cycles.
• The psychological level of $130,000 is emerging as a potential next target, with the $112,000 to $115,000 range acting as critical foundational support.

Technical Foundations and Key Price Levels

From a technical perspective, Bitcoin has entered a crucial retest phase following its successful breach of the $112,000 mark. Prominent trader Merlijn has highlighted the zone around $112,500 as a strategic “reload zone” for bullish investors. This area is widely regarded as a structurally robust support level, capable of serving as a springboard for a renewed upward trajectory, potentially targeting the significant psychological level of $130,000. With current market pricing hovering around $114,000, this range is further reinforced as pivotal for the next upward impulse, underpinning a distinctly positive prevailing sentiment.

On-Chain Indicators Signal Widespread Profitability

Further insights into the market’s current state are provided by Glassnode’s comprehensive on-chain analysis. Data reveals an extraordinary 96% of Bitcoin’s circulating supply is presently “in profit.” This metric, known as “Percent Supply in Profit,” has remarkably sustained a position above 90% for over a month. Historically, such high thresholds are observed during the more euphoric phases of sustained bull market cycles, unequivocally signaling widespread profitability across the investor base.

Navigating Potential Profit-Taking and Market Resilience

Despite these bullish signals, Glassnode also issues a cautionary note: such a high percentage of profitable supply inherently elevates the probability of profit-taking. With nearly all holders enjoying positive returns, the incentive to realize gains naturally intensifies. For example, a sustained decline below the 91% mark in the “Percent Supply in Profit” metric could potentially signal the onset of a more significant market correction. However, the market has demonstrated remarkable resilience. The persistent fact that 96% of the supply remains in profit without triggering substantial, widespread sell-offs suggests that long-term investors are maintaining strong conviction and may be anticipating even higher future price levels.

In conclusion, the confluence of strategic technical retests and robust on-chain metrics, particularly the pervasive profitability of the circulating supply, collectively positions Bitcoin for a potentially sustained upward trajectory. Analysts are meticulously monitoring the $112,000 to $115,000 range, viewing it as a critical foundational support. The $130,000 level is emerging as the subsequent key psychological and technical target. As long as the percentage of Bitcoin’s supply “in profit” remains elevated, the market’s underlying bullish momentum is likely to endure.