Bitcoin has approached a significant threshold that may indicate potential market corrections. Glassnode data shows that Bitcoin's unrealized profits have surged to $1.2 trillion.
Unrealized Profits of Bitcoin
According to Glassnode, the total unrealized profit of Bitcoin stands at $1.2 trillion, which is just $100 billion shy of the historical peak recorded in late 2021. This situation indicates that large investors who bought in early are significantly in profit, while retail traders are exposed at current price levels.
Technical Analysis and Trading Volumes
Bitcoin recently broke through the $109,000 resistance level, marking a significant achievement. This move also lifted the price above the 100-day and 200-day moving averages. However, analysts express caution as spot trading volumes remain low and do not confirm this breakout. This disconnect may suggest that the current rise could be temporary.
Analyst Predictions
BitMEX co-founder Arthur Hayes predicts a short-term dip to $90,000 for Bitcoin. He cites high unrealized profit levels, seasonal investor behavior, and uncertainty regarding U.S. Federal Reserve policy decisions. Despite this short-term warning, Hayes maintains a long-term bullish stance, believing that a temporary dip would help shake out weak hands and build a more substantial base for the next rally.
As profit-taking approaches and technical signals diverge, traders are closely watching Bitcoin’s next moves at this critical juncture, where both bullish and bearish scenarios are firmly in play.
