Bitcoin has made headlines again in the cryptocurrency world as its value surged past $99,000. This upward momentum has led many in the market to see their investments return to profitability.

Profitability Levels for Bitcoin Increase

The market’s recovery has pushed Bitcoin to key resistance thresholds. According to Glassnode, a top on-chain data provider, a significant number of Bitcoins are now considered profitable once more.

At the time of their report, Bitcoin’s price had risen to $97,900, the highest in two months. Their data indicates that over 3 million BTC have bounced back into profitable territory, bringing relief to investors.

This resurgence from previously unprofitable BTC holdings may enhance investor trust and improve market sentiment regarding the sustainability of this rally. It may also open the door for further price increases, potentially reaching the $100,000 mark.

Currently, about 88% of Bitcoin’s total supply is profitable, with previous losses mainly affecting those who purchased in the $95,000 to $100,000 range. This uptick in profitability suggests a possible wave of enthusiasm on the horizon.

Glassnode also noted that the supply profit oscillator has rebounded from its long-term average, indicating that investor expectations may be aligning without panic selling.

If the proportion of profitable supply continues to rise, it could lead to a major BTC rally as more investors engage with the market, supporting the idea that the price could continue its upward trajectory past the $99,000 level.

Short-Term Holders Selling Despite Profitability

While many believe the increase in profitable Bitcoin will bolster investor confidence, short-term holders appear to be acting differently. Alphractal, an advanced on-chain data platform, has revealed an unexpected trend among these investors, even as their holdings become profitable again.

The data shows that while the cost basis for short-term holders has been met, they are still selling off their positions. This rise in selling activity is ironically linked to their return to profitability, sparking concerns about a potential short-term price drop.

Alphractal mentions that the short-term holder’s realized price is now $93,400, which Bitcoin needs to maintain to avoid a fresh wave of selling. This price level acts as a support against pullbacks, and short-term holders are likely to defend it vigorously.

As of now, BTC is priced at $99,700, reflecting a nearly 4% increase in the last week. Additionally, trading volume has surged sharply, with CoinMarketCap reporting a more than 60% rise in volume within the past day, indicating bullish activity.