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Bitcoin Price Predictions for $200K Aren’t Fading Despite Profit-Taking Spike

Bitcoin Price Predictions for $200K Aren't Fading Despite Profit-Taking Spike

Key takeaways:

  • Bitcoin’s 98% supply in profit signals bullish sentiment but warns of volatility and potential price corrections.

  • Analysts predict BTC could hit $200,000 by 2025, but sustained demand is key.

Bitcoin (BTC) price predictions of $200,000 by the end of 2025 are becoming increasingly common, as a surge in profitability not only signals growing bullishness but also risk of a correction in the shorter term.

Bitcoin supply in profit soars to 98%

BTC supply in profit rose sharply to 98% from 87% between June 22 and Sunday, according to onchain data resource Glassnode. As of Tuesday, about 96.7% of all Bitcoin were in profit, sitting above the high band as shown in the chart below.

Historically, such elevated levels lead to market volatility as the potential for profit-taking grows, reflecting bullish sentiment amid caution for price corrections.

Related: Bitcoin ‘vertical acceleration’ off the table for now: Bitfinex

Between January and April, for instance, BTC price fell to $74,000 from about $109,000, a drop preceded by Bitcoin’s profitable supply rising to as high as 98.8% on Jan. 21.

Bitcoin: Percentage of supply in profit. Source: Glassnode

Profitability data reflects these bullish albeit cautious market conditions. For instance, Bitcoin’s realized profit/loss ratio has jumped to 2.8 from 1.1 since June 22, exceeding the high band threshold of 2.4, a 156.4% rise.

Bitcoin: Realized profit/loss ratio. Source: Glassnode

While this “reflects strong market confidence, it hints at heightened risk of profit-taking and demand exhaustion if price momentum falls,” Glassnode analysts said in their latest Weekly Market Pulse report.

“The market looks to have entered a cautiously optimistic regime, with stronger positioning from institutional players and renewed accumulation,” Glassnode explained, adding:

“For this rally to sustain, continued demand and broader market confidence will be essential.”

Bitcoin set for “explosive” breakout to $200,000

In November 2022, Bitcoin bounced from the bear market bottom at $15,500, staging a 590% rally to the current price of about $107,000. This price action has seen higher highs and higher lows, forming a channel in the weekly time frame, according to analyst Stockmoney Lizards. 

“Bitcoin is about to break out of a multi-year channel,” the analyst said in a Monday post on X. 

An accompanying chart showed the price seeking to break above the upper trendline, with the Stockmoney Lizards setting the

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