Bitcoin’s 95% Active Addresses Turn Profitable: Will It Break Out or Break Down?

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Bitcoin Price Prediction Cup and Handle Pattern Hints at Breakout Above $80,000

The post Bitcoin’s 95% Active Addresses Turn Profitable: Will It Break Out or Break Down? appeared first on Coinpedia Fintech News

Bitcoin (BTC) is on the rise, jumping over 10% in just one week! In the last 24 hours, its price went up by more than 2%, crossing the important $67,300 mark. With 95% of Bitcoin addresses now in profit, excitement is in the air. Usually, when so many addresses are doing well, it means strong growth is coming. But as the buzz grows, a big question hangs over us: Will this push Bitcoin to break new highs, or are we about to see a big price drop?

95% of Active Addresses Are In Profit

According to recent data from IntoTheBlock, over 51 million Bitcoin addresses are currently in profit. This number is quite impressive, as it represents 95% of all BTC holders who bought their assets for less than $67,300.

With 95% of Bitcoin addresses now in profit, market sentiment is booming. Historically, such levels have signaled strong bullish momentum but can also indicate a potential overextension.

Will we see a breakout, or is it a sign that the market is overheating? pic.twitter.com/8q1i9r4tJ8

— IntoTheBlock (@intotheblock) October 17, 2024

In comparison, around 3.37 million addresses purchased Bitcoin at an average price of $68,139, holding a total of 1.58 million BTC.

Among these profitable addresses, more than 80,000 are active daily. This high level of activity shows that there is strong engagement in the market.

Additionally, about 247,000 holders are close to breaking even on their investments, while only 3,440 addresses are currently showing losses. These figures indicate a significant shift in market sentiment, suggesting that bullish momentum is building.

Short Liquidations Driving Price Movement

A significant reason for the recent rise in Bitcoin’s price is the increase in short liquidations. According to Coinglass, over $118 million in crypto assets were liquidated in just 24 hours, affecting 43,903 traders. This spike in liquidations can lead to quick price movements, impacting overall market trends.

ETF Inflows Boosting Confidence

In addition to short liquidations, there has been a substantial influx of funds into U.S. Bitcoin exchange-traded funds (ETFs), totaling $555.9 million. This influx has boosted confidence among investors and traders.

Even with some recent price corrections, Bitcoin is still trading around $67,450, reflecting a 1% increase in the past 24 hours.

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