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Bitcoin Price Goes Above $65,000 Putting All BTC Holders In Profit

Last Updated March 7, 2024 3:23 PM
Nikola Lazic
Last Updated March 7, 2024 3:23 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Bitcoin breaks past $65,000 with 100% address profitability.
  • Reduced selling pressure boosts Bitcoin’s price momentum.
  • RSI at 88% suggests Bitcoin may be overbought.

On March 4 2024, Bitcoin (BTC) went above $65,000. According to data from IntoTheBlock , 100% of tracked Bitcoin addresses currently hold unrealized gains on their investments. 

In/out of money chart
IntoTheBlock data

This is the highest proportion of addresses “in the money” since November 2021, when Bitcoin peaked at around $69,000. Being “in the money” means the current price of Bitcoin is higher than the average acquisition cost for holders.

How All Bitcoin (BTC) Holders Made a Profit

This trend suggests reduced selling pressure in the market because most holders are not looking to sell to break even, which has positive implications for Bitcoin’s price momentum. IntoTheBlock interprets this as a bullish signal, noting new market entrants are buying from those already making a profit. 

The new dynamic is partly attributed to strong inflows into US-based spot exchange-traded funds (ETFs) approved in January. This move has altered demand-supply dynamics to favor a bullish trend. Bitcoin’s price has increased by 54%  so far this year, building on a 154% gain in 2022.

As the price of Bitcoin rose higher and higher, it climbed to revisit its all-time high. And without major corrections, it passed through all the purchasing prices, resulting in 100% profitability among investors. 

Bitcoin (BTC) Price Analysis 

Bitcoin‘s price climbed from a low of $38,860 on January 23, breaking past $46,000 before peaking above $65,000 on March 4. The analysis of its price trajectory since late January indicates a five-wave pattern. As a result, this upward trend may be near completion. With the current momentum, however, there’s room for further growth.

daily chart
Bitcoin’s uptrend could be near completion

Bitcoin is on the verge of touching its record highs, but the Relative Strength Index at 88% flags it as overbought, signaling caution. Typically, sharp rises in value lead to subsequent corrections, and if this pattern holds, Bitcoin could face a significant downturn, potentially retracting by 40% or more. The outcome of this surge is uncertain, because March could either see Bitcoin push to new heights or suffer a notable pullback.

Even with the possibility of reaching new all-time highs, the likelihood of Bitcoin sustaining an upward trajectory seems slim. It may momentarily surpass the $70,000 threshold without showing immediate signs of weakness, only to undergo a rapid decrease, evidenced by a sharp tail on the day’s closing chart.

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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