Over the previous couple of days, Bitcoin has displayed remarkable price performances and resilience, surpassing its previous all-time high of $108,000, achieved last December. Nonetheless, many investors proceed to face a setback as BTC’s profitability decreases significantly.
Investors See Reduced Gains As Profitability Shrinks
Despite a recent notable surge in prices, Bitcoin’s profitability has turned negative, reflecting a shift in market dynamics. The negative development was outlined by seasoned market expert and verified creator Axel Adler Jr. in a post on the X (formerly Twitter) platform.
Data from Axel Adler reveals that Bitcoin’s average realized profit has fallen from $146 million to about $62 million, representing a greater than 50% decline. The drop may imply that short-term traders are locking in lesser gains while long-term holders persistently exercise caution. Moreover, a decline in average realized profit signals a cooling period for the flagship asset.
Though they’re average, Adler claims these are still high levels, with absolute values being significantly higher. Nonetheless, the market will begin to chill down at the present levels if the common figure drops below $40 million.
This sharp drop is available in light of upward momentum as BTC surged to latest levels, raising questions on the sustainability of its uptrend. Nonetheless, crypto enthusiasts remain optimistic about BTC’s short-term and long-term prospects, asserting that the asset has not yet reached its peak for this cycle.
BTC’s Bull Market Still Intact
After navigating BTC’s price motion, Mags, a market expert and trader has pinpointed a possible time-frame for the asset to top out this market cycle. The expert offered his insights as speculation about Bitcoin reaching its market peak arises in the neighborhood.
Mags’ daring prediction is predicated on historical price trends resulting in a market top after surpassing its previous all-time high in each cycle. Historically, the expert contends that BTC’s price reaches a market top between 230 and 330 days after a break above its previous peak.
As seen within the 2016-2017 and 2020-2021 cycles, following a breakthrough of its prior peaks, BTC topped out in 233 days and 328 days respectively. Meanwhile, within the ongoing 2024-2025 cycle, the flagship asset just exceeded its previous all-time high.
With BTC recently breaking above its former peak, the trend implies the asset will reach a market top in 2025. Specifically, Mags believes this may occur between July and October 2025, which brings BTC’s price to a market top on the $305,000 level.
Presently, Bitcoin’s run to a latest all-time high has faced volatility, causing a drop to $102,700, with a virtually 3% decrease up to now day. Bullish sentiment is waning as its day by day trading volume is down by greater than 21%.
Featured image from Unsplash, chart from Tradingview.com