Yeliz Akmaca 
Bitcoin is sustaining its gradual recovery and is currently trading above $94,000. This uptrend follows a correction that drove prices down earlier this month. However, Bitcoin remains 12.7% below its all-time high from January. On-chain metrics reveal significant shifts in market dynamics, with Bitcoin’s supply in profit increasing.
Bitcoin Supply in Profit Nears Euphoric Levels
CryptoQuant analyst Darkfost evaluates Bitcoin’s on-chain dynamics, focusing on the supply in profit. Specifically, the profit supply metric—the percentage of circulating Bitcoin valued higher than its purchase price—has surpassed 85%. This metric dropped to 75% during the recent correction but has rebounded with the price recovery. (Euphoria: A state of extreme optimism and excitement in the market, often associated with rapid price increases.)
Historically, profit levels above 90% align with euphoric market phases. While this level has not yet been reached, the upward movement suggests euphoria. Darkfost notes that these phases often accelerate price increases but may lead to short-term pullbacks. Additionally, past cycles show the lowest profit supply at 45-50%, coinciding with bear markets. Thus, monitoring this metric is critical for identifying trend reversals.
Related: PCE Inflation Report Could Trigger Crypto Market Surge
Leverage Ratio and RSI: Market Aggression Declines
CryptoQuant analyst Crypto Lion examines leverage ratio and RSI data. Notably, CryptoQuant’s proprietary metric, which multiplies RSI by the open interest-reserve ratio, analyzes speculative positioning. Crypto Lion observes that RSI fluctuations are higher compared to the summer of 2021. However, leverage dynamics indicate the market is not overheating. Moreover, the market is shifting away from aggressive leverage, trending toward organic, spot-driven growth.
As Bitcoin’s supply in profit rises, its price climbs above $94,000. Investors are eyeing the $100,000 psychological resistance. On-chain data suggests the market is approaching euphoria, but reduced leverage points to a healthier uptrend. At the time of writing, Bitcoin is trading at $94,551.
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