- High unrealized profits suggest the potential for increased whale sell pressure.
- Breakout lacks strong volume support, risking near-term price reversal.
Bitcoin is approaching a key profit threshold that historically signals market reversals. Glassnode data shows that Bitcoin’s unrealized profits have surged to $1.2 trillion. This figure is only $100 billion below the all-time high set in late 2021, right before a major correction. The data indicates that whales large investors who bought in early, are deep in profit while retail traders are more exposed at higher price levels.
Glassnode’s chart highlights that much of the market sits in the green zone, showing widespread profitability. Historically, similar levels of unrealized gains have preceded market peaks as large holders begin to offload their positions.
Technical Breakout Faces Volume Headwinds
Bitcoin recently broke through the $109,000 resistance level, a key milestone on the charts. The move also took the price above both the 100-day and 200-day exponential moving averages. Technically, this signals growing bullish momentum and suggests buyers have regained control.
However, analysts remain cautious. Spot trading volume has failed to confirm the breakout, remaining relatively low compared to past rallies. This disconnect between price action and volume has raised concerns that the move could be a fakeout. Without strong participation, the rally may struggle to sustain upward momentum in the near term.
Arthur Hayes Predicts Pullback to $90K Before Next Rally.
BitMEX co-founder Arthur Hayes has issued a short-term forecast suggesting Bitcoin may dip to $90,000. He cited multiple factors, including the high unrealized profit levels, seasonal investor behavior, and uncertainty surrounding upcoming U.S. Federal Reserve policy decisions. Hayes also pointed to the potential liquidity impact of the proposed “Big Beautiful Bill,” which could divert capital away from risk assets.
CoinCryptoNewz highlighted that despite the warning of a near-term correction, Hayes maintains a long-term bullish stance. He believes a temporary dip would help shake out weak hands and build a more substantial base for the next leg higher. His view aligns with past cycles, where healthy corrections preceded major rallies.
As profit-taking looms and technical signals diverge, traders are closely watching Bitcoin’s next moves. The market sits at a critical juncture, with both bullish and bearish scenarios firmly in play.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
