Bitcoin STH has unrealized profits reach 21% – Is there room for growth?

Bitcoin’s transaction ranges from $100,000 to $105,000, triggering impatientness among investors eager for the next major move. After weeks of bullish momentum and a sharp rise in April lows, the market entered a quiet consolidation phase. Although this lateral price action seems to be smooth, traders are usually paying close attention before volatility.

According to new data from CryptoQuant, traders (holding Bitcoin for 1 to 3 months) are now firmly back in the profit space. Their average profit/loss margin fell from a deficit of -19% to +21% in a month, highlighting how much sentiment has changed in recent rally. Now, their profits are about 9% moving average, which is a healthy but not overheated level.

This recovery in unrealized gains suggests that market participants who purchased DIP have received rewards and may now be positioning another leg or preparing to make a profit. As the trading scope tightens, the market appears to coil to make decisive moves. Whether Bitcoin breaks a new historical climax or faces a deeper callback remains to be seen. Currently, waiting continues.

Traders regain profits as Bitcoin eye price discovers

Bitcoin shows signs of strength as it hovers below its all-time high price of nearly $109,000. Despite the recent upward momentum, the $105,000 resistance level has proven difficult to interrupt, locking BTC between $100,000 and $105,000. This integration creates a sense of hesitation, and the Bulls try to keep in control while the bears test their determination. Still, the broader trend remains positive, with many investors betting that if the current support holds, a price discovery breakthrough will be imminent.

Top analyst DarkFost shared insights into chain activity, highlighting that traders (defined as wallets that hold Bitcoin for 1 to 3 months) have recovered profits. Over the past month, their profit/loss margins have shifted sharply from -19% to +21%, indicating signs of market confidence. The 30-day moving average of profitability for this cohort is now 9%, indicating a healthy growth inadequate.

Interestingly, the realized price of these traders has dropped to $84,600 since the last correction, and it seems to be stabilizing. This indicates an increase in buying activity during the immersion process, thereby enhancing the bullish structure. Although the current levels are far from the +40% overheating zone, unrealized profits may soon attract some investors to earn some returns.

The next few days may be decisive. A breakthrough above $105K may open the door to price discovery, while failure to hold support may trigger short-term sales. Bitcoin is still at a critical point at this moment.

Technical details: Calm before stride

Bitcoin is currently trading at about $103,300 after failing to break through the $103,600 resistance level. With the price tightly below it, the area has become a major short-term obstacle for the Bulls. The chart shows a clear structure of the strong bullish momentum that began in early May from early May, pushing BTC from the $87,000 region to the $100K-$105K region. However, recent candles reflect hesitation, with several wicks above $103,600 being rejected, while the price below is below.

Despite being rejected, the Bulls continue to effectively defend the $100,000 support level. The 200-day EMA and SMA are well below the current price (about $88,000 and $92,600), which is the strength of the recent uptrend. The slight decrease in quantity indicates that traders are waiting for a clear breakthrough or breakdown before they can move into new directions.

If Bitcoin can be recovered and held over $103,600, it is increasingly possible to retest revaluation of $109K. On the other hand, the loss of $100,000 could be more in-depth for $96,000-$9.4K.

Featured images from DALL-E, charts from TradingView

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