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Bitcoin Market Analysis: Why 67% Profit Retention Could Prevent Major Downturn

Bitcoin has dropped 27% from its all-time high of $125K to around $90K, yet with 67% of supply still in profit, the market shows only moderate bearish pressure and potential signs of stabilization.

Bitcoin Market Analysis: Why 67% Profit Retention Could Prevent Major Downturn
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Bitcoin Price Analysis: 2025 Correction Shows Signs of Stabilization

Bitcoin [BTC] has experienced a 27% drop from its all-time high of $125,000, currently trading around $90,000, yet market analysis from Adler AM suggests the digital asset shows signs of resilience. Approximately 67% of Bitcoin’s supply remains in profit, sitting comfortably above the critical 50% threshold, indicating only moderate bearish pressure in the market so far.

Tracking BTC Supply-in-Profit Metrics

The supply-in-profit metric measures the portion of Bitcoin currently trading above its acquisition price. Historically, this indicator fell to 46% during the 2023 market bottom. Current values are reminiscent of early phases of the 2022 correction, suggesting the market is navigating a delicate balance between profit-taking and accumulation. Analysts note that as long as this metric stays above 50%, the market structure is not deeply bearish. However, a decline below this level could signal heightened risk and intensified correction pressure.

Signs of Recovery Amid Drawdowns

Bitcoin reached its all-time high in early October, followed by a 35% peak drawdown during its correction phase. Since then, the drawdown has recovered to 27.6%, with the one-week simple moving average beginning to turn upward. While the 67% profit level remains below the 90% levels typically associated with market tops, it is well above the sub-50% capitulation zone, hinting at the formation of a short-term base.

Market Stabilization and Outlook

Following the November correction, BTC price action has shown signs of stabilization. The short-term moving averages turning upward, combined with a healthy supply-in-profit percentage, indicates that the market is balancing selling pressure with attempts to establish a sustainable local bottom. Adler AM’s data points toward a cautiously optimistic scenario for Bitcoin, as the market navigates post-peak adjustments.

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Bitcoin Market Analysis: Why 67% Profit Retention Could Prevent Major Downturn

Bitcoin Market Analysis: Why 67% Profit Retention Could Prevent Major Downturn
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