Following a recent rally, almost all of Bitcoin’s supply is now profitable, but increasing leverage and “crowded call positioning” point to potential short-term vulnerability, according to on-chain analytics.
As of Wednesday, blockchain analytics firm Glassnode reported that 97% of Bitcoin’s supply is in profit.
“Building on the accumulation trend, Bitcoin’s rally to a new all-time high has lifted nearly all circulating supply back into profit.”
High profit levels often precede periods of consolidation, but realized profits remain modest, “indicating an orderly rotation rather than distribution pressure,” the analysts noted.
In other words, investors are gradually taking profits and reallocating their holdings rather than selling off in panic—a pattern typical of a healthy bull market, where profit-taking is balanced by new demand.
Possible pullback to $117,000
Using a “Cost Basis Distribution Heatmap,” Glassnode highlighted areas of structural support. They found support to be limited between $121,000 and $120,000, with stronger backing around $117,000, where roughly 190,000 BTC were last acquired.
“While price discovery phases inherently carry the risk of exhaustion, a potential pullback into this region could invite renewed demand as recent buyers defend profitable entry zones.”
This makes the $117,000 zone a key area to watch for “stabilization and a resurgence of momentum.”
Rising ETF and futures activity
Glassnode noted that “surging volumes confirm strong institutional demand” in Bitcoin futures and spot ETF markets, though increasing leverage and funding rates could create “short-term fragility.”
In the U.S., spot Bitcoin ETFs have seen over $2.5 billion in inflows in the first three days of this week, including their second-largest single-day inflow, according to CoinGlass.
Analysts said this week’s on-chain signals point to a “robust yet maturing uptrend—supported but increasingly sensitive to profit-taking and leverage adjustments as Bitcoin navigates price discovery.”
BTC has pulled back from a late Wednesday high of $124,000 to just below $122,000 at the time of writing.
