Bitcoin Surpasses $117,000: Investors May Be in Profit

Recently, the price of Bitcoin has surged above 117 thousand dollars, reigniting investor interest. According to data published by Glassnode, this price level indicates that more than 95% of the circulating supply has returned to profit. While this period of strong upward trend is exciting for many investors, there are warnings that market fluctuations may also be inevitable.

The fact that the majority of investors are in profitable positions overlaps with periods in the past when the market entered a state of excessive optimism. As analysts point out, the increase in widespread profitability can create selling pressure, which may lead to rapid fluctuations in price movements. In particular, profit-taking by short-term investors poses a risk of sharp fluctuations in the Bitcoin price.

Furthermore, the market's "Euphoria" phase indicates that a large portion of investors are profitable during long-term upward trends, but this movement is accompanied by excessive confidence and increased risk appetite. Historically, these phases tend to coincide with short-term corrections immediately following significant rallies. Therefore, under the current market conditions, how a correction may follow after profit-taking becomes an important monitoring point for investors.

Investors are advised to carefully observe potential sharp fluctuations in the Bitcoin price and market psychology. During these times, conducting technical analysis and identifying critical support and resistance levels becomes increasingly important. While making solid predictions about the market's future is challenging at the moment, investors need to closely monitor market dynamics.