99% Of Bitcoin Holders Are In Profit: Is BTC Dipping Because Some Are Cashing Out?

Bitcoin BTC/USD is trading around $117,000 after a brief pullback from its all-time high, with on-chain and technical indicators painting a complex picture of bullish momentum tempered by looming profit-taking pressure.

What Happened: According to blockchain analytics firm Glassnode and technical research firm Fairlead Strategies, recent developments suggest Bitcoin’s uptrend remains intact, but not without warning signs.

Glassnode's latest weekly report reveals that nearly 99% of all Bitcoin supply is now in profit, a historically rare event.

"There are few precedents where this many holders are in profit, and in past cycles, this tends to coincide with a rising tendency for profit realization," the firm wrote.

The report also highlights a surge in short-term holder profits and unrealized gains nearing previous cycle peaks.

"When short-term holders are this deep in profit, there is an elevated risk of sell-side pressure," Glassnode added.

Technical analysis from Fairlead Strategies reinforces a bullish outlook.

"After several weeks of consolidation, Bitcoin has decisively cleared final resistance, resuming its cyclical and secular uptrends in a bullish long-term development," wrote analysts Katie Stockton and Will Tamplin.

They project a "realistic intermediate-term objective" of approximately $134,500, citing reaccelerating momentum and positive weekly indicators.

Support levels are currently defined at $108,300 and $97,100, according to the Fairlead report.

The analysis noted that "the MACD is long-term bullish" and the breakout has "affirmed the cyclical uptrend."

Also Read: You Can Stake Ethereum, Solana On Robinhood—But Is It Worth The 25% Cut?

Why It Matters For Ethereum: Meanwhile, the Ethereum ETH/USD breakout has gained steam, with ETH recently pushing above $3,000.

"Ether has a confirmed breakout above its 200-day MA… The weekly MACD has shifted positive, and the weekly stochastics have a bullish ‘pop'," Fairlead wrote.

The firm notes resistance at $3,070–$3,100 and a long-term upside potential tied to 2024 highs around $4,000, assuming follow-through continues.

Glassnode's report also notes a divergence in demand across wallet cohorts.

While smaller holders continue to accumulate, larger wallets, particularly those holding more than 1,000 BTC, have shown "muted" growth.

Whale activity on exchanges has increased as well.

"The Accumulation Trend Score has fallen sharply… suggesting a softening in aggregate demand," Glassnode stated.

Relative strength among altcoins is also shifting, according to Fairlead's Relative Rotation Graph.

Stellar XLM/USD, Ripple XRP/USD, and Hedera HBAR/USD have shown improving trajectories versus Bitcoin, while Solana SOL/USD and Avalanche AVAX/USD have weakened.

"Ripple… has pushed out of a triangle pattern on renewed intermediate-term momentum," the report observed.

At the time of writing, Bitcoin is trading down 4% for the day at $116,880, approximately 5% below its all-time high above $123,000 seen yesterday.

Ethereum is trading around $2,980, down about 2.5% on the day.

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