90% Of Bitcoin Supply In Profit – Could This Cycle Mirror The 2017 Bull Run?

Bitcoin is on the verge of a historic breakout, consolidating just below the highly anticipated $100K mark. After surging over 8% since the start of the year, the leading cryptocurrency has captured the attention of investors and analysts alike. While the market remains cautiously optimistic, all eyes are on BTC for confirmation of its next big move.

Top analyst Axel Adler recently shared insightful data on X, revealing that 90% of the total Bitcoin supply is currently in profit. This key metric highlights the strength of BTC’s recent rally and underscores the widespread optimism in the market. Adler notes that such high levels of profitability typically align with bullish market conditions, fueling expectations for a breakout above $100K.

The psychological and technical significance of the $100K mark cannot be overstated. A decisive move above this level could signal the start of a new phase in BTC’s bull cycle, inviting fresh capital and sparking renewed enthusiasm across the crypto space. However, as the price consolidates, investors are cautiously awaiting confirmation.

Bitcoin Bull Cycle Looking Strong 

Despite the uncertainty and negative sentiment surrounding Bitcoin’s failure to break above the $100K mark, the current market cycle remains robust and bullish. BTC continues to hold key demand levels, reinforcing its bullish structure. Sideways consolidations, often misunderstood as stagnation, are critical for setting up large-scale moves, allowing the market to build momentum.

Top analyst Axel Adler shared insightful data on X, highlighting the market’s resilience. Currently, 90% of the total Bitcoin supply is in profit, a strong indicator of market health. According to Adler, if the current cycle avoids “black swan” events—unpredictable and disruptive occurrences—the market could follow a trajectory similar to the 2017 bull cycle. During that period (depicted as “blue square #1”), Bitcoin demonstrated a bullish trend with minimal pullbacks, maintaining a metric level of 80%.

Adler also reflected on the 2021 cycle (blue square #2), suggesting it could have followed the same bullish path if not for the disruptive effects of the China mining ban. This event momentarily derailed the upward trend, emphasizing how external shocks can influence market dynamics.

As Bitcoin consolidates below $100K, its current pattern reflects a healthy cycle poised for further growth. Investors are closely watching for a breakout above this psychological barrier, which could signal the start of the next bullish phase. With strong fundamentals and minimal disruptions, Bitcoin’s path forward looks increasingly promising.

Technical Analysis: Key Liquidity Levels

Bitcoin is trading at $99,100 after a robust rebound from the 4-hour 200 moving average at $98,299. The price also found support at the 4-hour 200 EMA, a key technical indicator that signals strength in the short term. This bounce has left investors optimistic about the potential for a bullish continuation in the coming days.

If BTC manages to break decisively above the critical $100K mark, it would pave the way for a massive rally into uncharted territory. A confirmed breakout at this psychological and technical level is likely to attract significant buying pressure, further strengthening Bitcoin’s bullish momentum.

However, risks remain. Should BTC fail to reclaim $100K in the near term, the market could enter a prolonged consolidation phase, testing investor patience and allowing for liquidity to accumulate. A failure to maintain the current bullish structure could also lead to a deeper correction, potentially revisiting lower support levels.

Featured image from Dall-E, chart from TradingView