Bitcoin is showing mixed signals in the market as traders navigate between falling profits and strong accumulation. Although its price remains under pressure, investor sentiment is holding up, hinting at confidence in the cryptocurrency’s long-term value.
Bitcoin Profits Hit Two-Month Low
Over the past week, Bitcoin profitability has taken a sharp hit. The digital asset’s decline from recent highs has pushed several addresses out of profit, leading to the lowest realised gains in nearly two months.
This drop is consistent with previous market cycles. Historically, when almost all of Bitcoin’s circulating supply around 95% is in profit, the market tends to form a local top. At such points, many investors take profits, triggering short-term corrections. This pattern appears to be repeating, with profit-taking causing weakness in the price.
While this may seem discouraging, seasoned traders view it as a natural cooling-off phase after an overheated rally.
$1 Billion in Bitcoin Accumulated in 24 Hours
Despite the decline in profitability, investors are showing resilience. On-chain data reveals that more than 11,890 BTC, worth over $1 billion, were withdrawn from exchanges within just 24 hours.
This movement suggests accumulation rather than panic selling. Typically, when large amounts of Bitcoin are removed from exchanges, it signals that holders are choosing to store their assets securely, with the expectation of long-term value growth.
Exchange outflows have been consistent, even as prices remain under pressure. This shows that previously active sellers are returning to the market as buyers, reinforcing the view that many see the current price as an attractive entry point.
Key Support at $112,500 Holding
At the time of writing, Bitcoin is trading at $112,425, holding just above the crucial $112,500 support zone. This level has acted as a strong buffer since early August, preventing deeper losses despite volatility.
For now, Bitcoin’s price action shows signs of consolidation rather than collapse. If accumulation continues and buying pressure builds, the cryptocurrency could bounce back towards the $115,000 level. A successful break above this resistance might provide stability and restore short-term momentum.
On the other hand, if demand weakens and selling resumes, Bitcoin could fall towards $110,000. Such a move would mark a fresh two-month low and expose the market to further downside risk.
Investor Sentiment Remains Positive
Although the profit decline paints a cautious picture, overall sentiment remains surprisingly optimistic. The strong wave of accumulation suggests that investors are prioritising long-term growth potential over immediate price action.
This behaviour highlights a maturing market mindset. Rather than being swayed by short-term volatility, investors appear to be positioning for future gains, reflecting trust in Bitcoin’s role as a long-term store of value.
Bitcoin is currently navigating a delicate balance between weak profitability and strong accumulation. The resilience shown by investors through large-scale withdrawals from exchanges could provide the foundation for a recovery in the coming weeks.
If the $112,500 support continues to hold and accumulation strengthens, Bitcoin could re-test $115,000 in the short term. However, any slowdown in buying could drag prices lower, with $110,000 being the next critical level to watch.
For now, while short-term challenges remain, the broader sentiment indicates that confidence in Bitcoin’s long-term potential is far from fading.
