Bitcoin price has regained momentum as supply in profit rises and trend strength improves.
Summary
- Bitcoin price is holding near $116K as short-term trend flips bullish.
- The rise in the percentage of supply in profit shows recovery is being met with holding rather than rapid profit-taking.
- A move above $118,500 would allow Bitcoin to challenge recent highs, while holding support near $112,000 keeps the bullish structure intact.
As of this writing, Bitcoin is up 4% over the last day, trading at about $116,030. Now up 5.1% for the week and 5.7% for the past month, the asset is about 8% below its peak of $126,080 set on Oct. 6.
Bitcoin’s (BTC) 24-hour trading volume increased 140% to $54.45 billion, indicating a rise in market activity. According to Coinglass data, the derivatives market saw a 6.7% increase in open interest and a 149% surge in futures volume to $95.49 billion.
Rising open interest and derivatives volume suggest that traders are positioning for future price movement rather than simply closing out current positions. This setup often precedes a stronger directional trend.
On-chain signals show rising confidence
The percentage of Bitcoin supply in profit has started to rise once more. The figure is currently hovering around 83.6%, according to an Oct. 27 analysis by CryptoQuant analyst Darkfost. In the past, Bitcoin has seen sustained price growth when this indicator falls between 85% and 90%, as holders show confidence and are reluctant to sell.
When the profit margin surpasses 95%, previous market corrections have usually taken place, which often indicates overheated market conditions. By contrast, capitulation phases during recent pullbacks saw the metric bottom between 73% and 81%, marking points where late buyers were flushed out.
Healthy sentiment appears to be returning, as shown by the recent increase back toward the mid-80% range. However, Darkfost warns that a return above 95% would be a warning sign.
At the same time, exchange data shows a notable movement of coins into Binance in October, with a large share of those transfers attributed to whales. Arab Chain, another CryptoQuant contributor, noted that 185,000 BTC entered Binance in October. Of that total, whales made up 24.7%, the largest percentage since July.
Exchange inflows may indicate selling pressure, but this pattern seems more calculated. Instead of completely leaving the market, whales are repositioning, probably in expectation for future trend momentum.
Bitcoin price technical analysis
From a technical perspective, market structure remains constructive. The relative strength index sits near the mid-50s, in neutral position and allowing room for continued movement.
A balanced market is reflected by the MACD and Momentum indicators, which show a slight bullish tilt. The price is currently trading above key short- and long-term moving averages, which indicates an underlying upward trend.
Support has formed around the $112,000 area, where buyers have consistently stepped in to defend dips. On the upside, price is pressing toward resistance at $118,500. A decisive move above that zone would likely draw momentum back toward the previous high near $126,000.
