Bitcoin Jumps 98% in Crucial On-Chain Metric, Road to $120,000?

Bitcoin (BTC), the leading digital currency, has seen a 98% increase in the number of profitable holders. According to IntoTheBlock data, 98.9% of Bitcoin holders are currently “In The Money,” suggesting a potential bullish rally.

Nearly all Bitcoin holders in profit

Notably, this percentage represents 9.69 million BTC valued at $2.17 trillion. With this massive amount of Bitcoin purchased at a price below the current market value, there is likely no sell pressure on investors, as they are already in profit. It signals bullish sentiment on the Bitcoin market.

The remaining 1.1%, or 218,530 BTC, is worth $4.11 billion “at the money.” That is, they are not at a loss and purchased close to the current price of the asset.

Interestingly, there are currently no Bitcoin holders out of the money. This paints a strong bullish market for the flagship cryptocurrency.

As of press time, Bitcoin is exchanging for $109,885.92, representing a 1.69% increase in the last 24 hours. The coin had soared to $110,541.46 in earlier trading sessions as it looked to flip its all-time high (ATH) of $111,970.17. Its price is less than 2% away from surpassing this level. Investors are also active, and trading volume has increased by 30.62% to $60.96 billion.

Can BTC overcome volatility on road to $120,000?

All the metrics indicate a significant potential rally. The high percentage “In the Money” reflects strong market confidence. It suggests that traders are positioned for price stability and a possible increase if BTC consolidates between $108,500 and $110,500.

Such a setup could see the coin break out above $112,000 if trading volume remains high up in the green zone. With market sentiment aligning, Bitcoin might well be on its way to setting a new ATH near the $120,000 price level.

The road to $120,000, however, depends on Bitcoin’s ability to overcome volatility. If it fails to break resistance at $112,000, this could trigger a correction and a slip to $105,000.