Bitcoin Surges 22.5% in 30 Days Amid Balanced Market Structure

Bitcoin (BTC) has experienced a significant surge, increasing by approximately 22.5% over the past 30 days. This rapid ascent has raised concerns within the cryptocurrency market about the sustainability of the rally and the potential for a price correction. However, recent on-chain data indicates that despite elevated unrealized profits, there are no signs of increased selling pressure for the leading cryptocurrency.

According to a recent analysis by Bitcoin analyst Crazzyblockk, new investors who have held BTC for less than one month are currently sitting on unrealized profits of 6.9%. Similarly, short-term investors who have held Bitcoin for less than six months are enjoying unrealized profits of 10.7%. These figures suggest that the unrealized profit/loss ratio remains high, with unrealized profits significantly outweighing unrealized losses.

Historically, a high percentage of unrealized profits across the network has often preceded sharp price corrections. However, the current market structure appears different. There is no outsized concentration of risk in one participant group, indicating a balanced profit distribution. Additionally, while profit levels are high, loss levels remain compressed, suggesting limited pressure from distressed sellers. This implies that there is no strong behavioral signal suggesting a high willingness to trigger major distribution or selling.

Despite the elevated macro conditions and volatility risk, a price correction cannot be ruled out. However, the current setup does not indicate an imminent sell-off. The relatively narrow spread in unrealized profits between new and short-term holders further supports this balanced market structure.

Seasoned crypto analyst Ali Martinez recently predicted further upside for Bitcoin. Martinez noted that BTC has undergone another bullish breakout, with the potential to reach a new all-time high (ATH) around $111,500. This prediction is based on the current momentum, which has also drawn in retail investors. Wallets holding less than $10,000 worth of BTC are steadily returning to the market, indicating growing retail participation.

However, there are some warning signs that may dampen BTC’s current bullish trajectory. Despite the recent encouraging price action, Bitcoin’s Demand Momentum remains subdued. Additionally, the “supply scarcity” narrative still lacks meaningful strength, as despite depleting exchange reserves, BTC is not likely to face genuine supply scarcity in the near term. At the time of reporting, BTC was trading at $106,528, up 1.8% in the past 24 hours.