Bitcoin Golden Cross Forms Amid Shrinking Holder Profits

Key Insights:

• Long-term holder profits shrink as Bitcoin nears all-time highs, signaling potential market shifts.
• Bitcoin confirms Golden Cross, indicating strong bullish momentum and potential breakout.
• Technical resistance trend-line weakens, suggesting a possible breakout and significant price surge ahead.

Long-term Bitcoin holders are experiencing reduced unrealized profits. This shift is happening even as BTC’s price approaches its all-time high.

The unrealized profit made by long-term holders is estimated at 220% according to the information obtained by analyst CryptosRus. This is far lower than the profit margins of about 300- 350% recorded in previous bull market peaks.

The current price of Bitcoin is around $107.6K, but the cost basis of long-term holders is at $33.4K. Investors are showing less interest in Bitcoin. This is because the difference between the present price and the LTH cost basis is reducing.

Lower unrealized profits suggest long-term Bitcoin holders may be reassessing their strategies. A decline in the MVRV ratio supports this behavioral shift.

Despite Bitcoin’s impressive price growth, current gains appear lower than before. This pattern hints at changing market sentiment among seasoned investors. This has prompted analysts’ speculation that the market is on a tipping point.

Golden Cross Confirmed as Bitcoin Eyes Upward Momentum

In the wake of the depreciating long-term holder profits, technical analysts are seeing massive bullish signs. It is worth noting that the price of Bitcoin has confirmed a Golden Cross.

The Golden Cross is formed when the 50-day moving average exceeds the 200-day moving average. It is a technical indicator that is mainly linked to upward price movement.

Titan of Crypto says that the recent bounce of BTC off the Ichimoku cloud is a necessary support. Moreover, Bitcoin is slowly turning towards its trendline. This means that as soon as it breaks this resistance, it may increasingly increase in price.

A Fair Value Gap (FVG) zone also adds to the optimism, indicating areas where Bitcoin could find support. BTC is currently testing its trendline resistance.

Breaking above this level is key for continuing its upward momentum. If Bitcoin succeeds, it could signal a new phase of bullish price action in the market.

Bitcoin Poised for Breakout as Resistance Trend-Line Weakens

According to Crypto Michael, Bitcoin is under the largest resistance trend line in its history. It has been repeatedly tested over the past few years. His analysis notes that this trend line, most recently tested in 2023 and 2025, will likely weaken with each successive touch.

Michael projects a breakout above this resistance could signal a significant price movement. This could potentially mark the “breakout of the decade.” The chart illustrates Bitcoin’s price action from mid-2022 to early 2023, during which the asset saw relatively stable movements.

However, from 2023 to 2025, Bitcoin experienced a sharp upward trajectory, with price fluctuations still aligned to the trend line. Given the historical pattern, Crypto Michael suggests that the upcoming breakout could trigger a major rally for Bitcoin.

Bitcoin Consolidates Above Key Price Levels, Suggesting Strong Momentum

While long-term holder profits decline, Bitcoin’s market remains resilient with shallow dips above significant realized price levels. According to Glassnode’s analysis, the Bitcoin price has consistently stayed above the 1-month realized price of $105,100.

This indicates that short-term holders are maintaining profitability. BTC price is currently higher than key short-term realized price levels.

It’s trading above the 24-hour, 1-week, and 3-month benchmarks of $105,600, $106,300, and $101,200, respectively. These price levels reflect a positive market sentiment, with minimal sell-off pressure.

Glassnode data shows Bitcoin’s current price exceeds the cost basis of recent buyers. These younger investors have been steadily accumulating Bitcoin.

The price now sits above 70% of their cost basis levels. This creates a “Top Heavy Risk” scenario, signaling potential downside pressure.

The observation that all cohorts of short-term holders are still profitable indicates no current market selling pressure. Bitcoin is experiencing great momentum as it consolidates over the major price points.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.