Bitcoin Bounces Back, Sending 7 Million Coins Back Into Profit Territory – Bull Market Reviving?

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With the broader cryptocurrency market regaining bullish traction, Bitcoin, the largest digital asset, could once again be heading to its all-time high of $125,000. Following BTC’s renewed upward movement, millions of BTC have moved back into profit territory, reinforcing the strength of the ongoing rally.

More Bitcoin Is Moving Back Into Profit

A significant portion of the Bitcoin supply is now back into the profit region, due to the recent rise in BTC’s price, which is currently positioned above the $114,000 level. CryptoQuant, a leading on-chain data analytics platform, shared the development with the public on the X platform, which highlights renewed investor confidence.

According to data from CryptoQuant’s author Crazzyblockk, Bitcoin has staged a powerful rebound, flipping market sentiment as nearly 7 million BTC have returned to profit. This comeback demonstrates how resilient Bitcoin is to changing macroeconomic circumstances and ongoing market volatility.

Data from Bitcoin’s age-based supply distribution shows that 5.1 million of the coins are being held by investors for under 6 months. Meanwhile, 1.8 million BTC is held by the newest market entrants, reflecting improving profitability among recent buyers.

Addressing the significance of the development, Crazzyblockk highlighted that realized profit often serves as a behavioral driver of price swings. When short-term investors start to see steady profits, they usually become more confident and increase the length of time they keep their positions. Furthermore, they increase their stakes at higher levels, indicating a growing belief in the power of the market. 

BTC Reclaims Above Key Cost Bases

Over the past 24 hours, Bitcoin’s price has experienced a solid upward move, reclaiming key cost bases. The chart shows that these key cost bases are situated between $112,000 and $113,000 resistance zones, which BTC has recently broken above the range and is heading for the $115,000 price level.

Crazzyblockk has underlined three crucial on-chain cost bases. At around $112,000 is the average cost basis of BTC holders under 6 months. The cost basis of the new money cohort, those holding BTC between 0 and 1 month, is around $113,000. Meanwhile, for 0 to 1 week holders, also known as short-term entrants, their cost basis is located near the $110,000 mark.

As the market recovers, these zones are where confidence and momentum often shift between bullish and bearish sentiment. This is because they represent the wallet averages of active market players, and holding above these realized price levels is critical. According to the expert, BTC’s reclaiming above these levels represents a psychological and structural shift back toward optimism. 

Although a retest of these levels is likely, a persistent trade above them could validate the newfound market confidence and pave the way for the next leg of the bullish trend in the coming days and weeks. However, a drop in Bitcoin’s price below the cost basis zones would hint at growing weakness and hesitation among short-term players.

Featured image from Pixabay, chart from Tradingview.com

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