Bitcoin Profitability Hits Low, But Investors Are Hoarding BTC

Bitcoin is going through volatile times as it tries to recover from its plunge to $112,500. BTC is currently trading at $112,425, just above key support

Let's figure out what's happening in the Bitcoin (BTC) market and what to expect from the cryptocurrency price.

Bitcoin Profits Are Falling

Bitcoin profits fell sharply over the week, hitting a two-month low. The price drop pushed several addresses out of profit, cutting into overall gains. Such declines are common in overheated markets.

Historically, when 95% of supply is in the money, a market peak is formed, increasing the likelihood of a trend reversal. Investors tend to take profits at these levels, leading to short-term corrections. This behavior, although predictable, still casts doubt on expectations for further price gains.

Bitcoin Offering in Profit. Source: Santiment

Despite the drop in profits, investors remain confident. According to on-chain analysis, over 11,890 BTC have been withdrawn from exchanges in the last 24 hours. This indicates accumulation as holders wait for a recovery.

The net position on exchanges continues to decline, even as prices fall. Sellers are becoming buyers, indicating a shift in strategy. These actions show confidence in the long-term value of Bitcoin, despite temporary difficulties.

Bitcoin Net Position Data on Exchanges. Source: Glassnode

BTC Price Maintains Support

The current price of Bitcoin is $112,425, holding on to the $112,500 support level. This area has remained strong since early August, protecting against more significant losses. The price action now points to consolidation rather than a decline.

Given the current sentiment and accumulation, Bitcoin could reach $115,000. If buying pressure increases and macroeconomic support strengthens, BTC will have a chance to consolidate above this level. Otherwise, it could continue to trade in the range between $112,500 and $115,000 until the situation becomes clearer.

Bitcoin Price Analysis. Source: TradingView

If accumulation slows and selling resumes, Bitcoin risks falling to $110,000. This would be a nearly two-month low and increase the risk of further declines in BTC.

Source: cryptonews.net