High-Risk Profit Levels in the Supply of BTC, ETH, and XRP

By AZC News | 2 hours ago

An astonishing 80% of Bitcoin, Ethereum, and XRP supplies currently reside in profit zones well beyond the typical range of 55-75%.

The Bitcoin market is grappling with significant selling pressure, experiencing a 7% decline in the past week and currently stabilizing around the $42,750 mark. Despite robust inflows into Bitcoin ETFs, the overall price movement has been relatively subdued.

Santiment, a reputable on-chain data provider, highlights that Bitcoin, Ethereum, and XRPLedger are currently displaying historically elevated levels of risk for profit, standing at 83%, 84%, and 81%, respectively. These figures surpass the typical ranges of 55%-75%, observed since 2018.

While the cryptocurrency market could potentially witness further growth due to increased ETF exposure and positive news, Santiment emphasizes the importance of a sustained long-term expansion, indicating that a drop below 75% of their supplies in profit would be a crucial indicator.

BTC Forms A Golden-Cross

In another development, Bitcoin has recently formed a "golden cross" as its 50-week simple moving average (SMA) crossed above the 200-week SMA. This phenomenon, occurring on the Bitcoin weekly price chart for the first time, is perceived by market enthusiasts as a positive signal for asset prices.

The concept of the golden cross, signaling a potential long-term bull market, originates from technical analysis and has its roots in Japan. Despite its forward-looking nature, some traders advise caution regarding crossovers, noting that they may be subject to lag due to their reliance on historical data and past price movements. The current golden cross on the weekly chart follows a substantial Bitcoin rally of over 70%, propelling it to $42,700 in the last four months.

Looking ahead at BTC price action, Bitcoin encountered difficulty breaking out of its range and remained below the $43,000 level on Tuesday.