What to Know Bitcoin short-term holders have remained mostly profitable for nearly one month, strengthening signals that bearish market pressure is easing steadily. CryptoQuant estimates prof
What to Know
- Bitcoin short-term holders have remained mostly profitable for nearly one month, strengthening signals that bearish market pressure is easing steadily.
- CryptoQuant estimates profitable holdings at $168.2 billion, exceeding $102.6 billion in losses and reducing financial pressure across recent buyers.
- Sustained trading above $80,000 would strengthen the reversal case, while rejection could return more short-term holdings to loss territory quickly.
Bitcoin short-term holders have remained mostly profitable for nearly one month, suggesting that the cryptocurrency’s bear market could be approaching its end. According to CryptoQuant analyst Darkfost, sustained profitability among recent buyers has historically emerged during important Bitcoin market reversals.
Sustained Holder Profits Strengthen Bitcoin Reversal Case
CryptoQuant estimates that short-term holders control $168.2 billion in unrealized profits, compared with $102.6 billion in unrealized losses. Consequently, profitable holdings exceed losing positions by $65.6 billion, while the profit-to-loss ratio stands near 1.64.
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Around 62% of the measured short-term holder value remains profitable, indicating reduced financial pressure among investors who purchased Bitcoin recently. Darkfost emphasized the duration because profits have remained dominant for almost one month, unlike previous unsuccessful recovery attempts.
Bitcoin produced a similar reading in January, although profitable conditions lasted less than one week before losses regained dominance. Historical data from the 2022 and 2023 bear market highlights the importance of maintaining profitability across an extended period.
Brief recoveries repeatedly failed because short-term holders used price rebounds to exit near their acquisition levels. However, conditions changed during the 2023 recovery when profitable holdings became stable and Bitcoin established higher price levels.
Bitcoin Still Needs Confirmation Above $80,000
Darkfost identified $80,000 as the crucial confirmation level for a durable reversal, while Bitcoin traded around $78,000 on the latest chart. A sustained move above $80,000 would place more recently acquired coins into profit and expand profitable short-term holder supply.
Maintaining that threshold during subsequent pullbacks would show that buyers can absorb profit-taking while establishing stronger market support. Conversely, repeated rejection below $80,000 could weaken the bullish interpretation because profitable holders may secure gains as momentum fades.
Notably, this indicator measures holdings above or below acquisition costs rather than directly tracking investors’ selling behavior. Broader demand and liquidity conditions also remain essential when determining whether Bitcoin can maintain the emerging recovery structure. Bitcoin’s sustained short-term holder profitability strengthens Darkfost’s reversal argument, but lasting strength above $80,000 would provide more reliable confirmation.
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