Bitcoin's Profit Overhang Grows as Demand Remains the Key

Bitcoin's price has risen to near $77,381, and according to Glassnode, 68% of its circulating supply is now in profit at this level, up from 65% in May. This means there are approximately 600,000 additional BTC that could be sold for a gain before Bitcoin reaches its next major resistance band.

At current prices, these coins are worth around $47 billion. The short-term holder cost basis has also been reset lower to near $71,000 due to months of trading through the June-to-August range.

The same accumulation that steadied Bitcoin's floor during the drawdown also built a larger pool of holders with real gains to protect as it moves back up.

However, there are now more profitable supply above the current price than in the last time Bitcoin traded at this level. For Bitcoin to break out and reach its next target near $89,700, fresh demand large enough to absorb both newly profitable buyers and patient long-term holders approaching breakeven is needed.