Bitcoin bulls still in profit as price drops 27% from $125k peak

Bitcoin trades about 27% below its $125k high, yet 67% of supply remains in profit above the key 50% band, signaling only moderate bearish pressure so far.​

Bitcoin has declined 27% from its all-time high of $125,000 to approximately $90,000, yet 67% of the cryptocurrency’s supply remains in profit, according to market analysis from Adler AM.

The metric, which tracks the share of Bitcoin ( BTC ) supply currently trading above its acquisition price, remains above the critical 50% threshold. During the 2023 market bottom, the indicator fell to 46%, according to the analysis. Current values resemble conditions observed at the beginning of a prolonged correction period in 2022.

Market analysts note that as long as the metric stays above 50%, the market structure appears only moderately bearish. A break below this level could indicate elevated risk and potentially intensify correction pressure, according to the report.

Bitcoin down from all-time-high

Bitcoin reached its all-time high of $125,000 in early October before entering a correction phase that produced a peak drawdown of 35%. The drawdown has since recovered to 27.6%, with the one-week simple moving average beginning to turn upward, the analysis stated.

The current 67% profit level stands below the 90%-plus levels typically associated with market tops, while remaining well above the sub-50% capitulation zone, according to the report. The reduction in drawdown from the 35% peak indicates a recovery process and suggests the formation of a short-term base.

Price action has shown stabilization following a November correction, with short-term moving averages beginning to turn upward. The supply-in-profit metric’s position above the 50% threshold indicates the market is balancing between selling pressure and attempts to establish a sustainable local bottom, according to the analysis.

Bitcoin trading data was provided by market analytics firm Adler AM.