Bitcoin Faces Potential Short-Term Volatility Amid High Profit Levels

While Bitcoin's on-chain data indicates a potential slowdown in its current upward momentum, a key metric displays levels that are historically exceptional, hinting at a possible upcoming correction or phase of distribution. Currently, nearly 99% of the Bitcoin supply is in profit, reflecting widespread confidence among holders. However, such high levels of unrealized gains often precede mass selling, especially when the market is in euphoria. The data shows the percentage of supply in profit has been near 100% since May, aligning with annual highs above $100,000. Historically, these peaks tend to mark market tops or long periods of consolidation. In summary, Bitcoin remains robust, but the saturation of profits could lead to short-term volatility unless the price breaks higher.