Bitcoin Hits All-Time High Above $106,500, 40% Gain in Six Weeks

Bitcoin has recently achieved a significant milestone, closing its daily candlestick above $106,500 for the first time, which also marked the day it hit an all-time high (ATH). This achievement underscores the strong buying pressure and market consolidation that has been fueling Bitcoin's rally.

The cryptocurrency has seen a remarkable performance, trading around 40% higher than it was six weeks ago. The latest weekly close of $106,500 set a new record, but Bitcoin has been trading within a range of $102,000 to $105,000 for the past two weeks, indicating a period of consolidation just below its all-time high.

Investor profitability has seen a notable improvement. Short-Term Holders (STHs) have experienced a significant financial recovery, with 71% more of their supply now in profit compared to the previous month. This marks the second-largest profitability uptick for this cohort on record. The Market Value to Realized Value (MVRV) ratios reflect this shift, with the overall Bitcoin MVRV ratio rising from 1.74 to 2.33, equating to an increase in unrealized gains from 74% to 133%. The STH MVRV shifted from 0.82 to 1.13, moving from an unrealized loss of 18% to a 13% gain. Long-term holders (LTHs) saw their MVRV increase from 2.91 to 3.30, changing from 191% to 230% in unrealized gains. These metrics signal widespread portfolio improvements, which are associated with elevated investor confidence.

As portfolios recover, many investors are securing gains. Over the past 30 days, STHs realized $11.4 billion in profit, up from $1.2 billion in the previous 30-day period. Daily realized profits peaked at $747 million as Bitcoin decisively surpassed the STH cost basis of $93,000. The report noted a spike in the STH Realized Profit/Loss Ratio, now exceeding levels seen on 92% of prior trading days. Historically, elevated readings occur during bullish market phases or as rallies approach exhaustion. However, the current Sell-Side Risk Ratio remains well below peak levels, indicating that profit-taking is not yet overwhelming new demand. This metric measures whether holders are locking in significant gains or losses.

These indicators complement Bitcoin’s Realized Cap, which has reached a record high of over $900 billion, with a 4.2% increase over the past month. The metric aggregates the total capital stored in the network based on the price at which investors moved each coin last. This steady accumulation signals that the market is absorbing profit-taking without major dislocation.

The recent surge in Bitcoin's price can be attributed to several factors, including robust buying pressure, increased investor profitability, and a bullish market sentiment. The market's ability to absorb profit-taking without major dislocation is a positive sign for the cryptocurrency's future performance. As Bitcoin continues to consolidate just below its all-time high, investors are closely watching for any signs of a breakout or further consolidation. The market's reaction to these developments will be crucial in determining the direction of Bitcoin's price in the coming weeks and months.