EddieJayonCrypto

 28 May 25

tl;dr

Bitcoin’s price surged 50% from April lows, reaching a record high near $112,000 on May 23 amid strong market momentum. A key metric, Bitcoin’s Unspent Transaction Outputs (UTXOs), shows 99% of holders are in profit, a level historically linked to market euphoria and potential turning points. Despit...

Bitcoin's price experienced a remarkable 50% surge from April lows, reaching a record high near $112,000 on May 23 amidst strong market momentum.

Currently, 99% of Bitcoin’s Unspent Transaction Outputs (UTXOs) are in profit, a threshold historically associated with market euphoria. This metric reflects unrealized profits among holders and often signals heightened bullish sentiment; however, analysts urge caution as macroeconomic uncertainties persist.

Signs of short-term buyer fatigue are appearing, indicated by a 25.1% decline in the 14-day Relative Strength Index (RSI), reduced net spot demand, and increased speculative activity in derivatives markets. Sell-side pressure is intensifying, as shown by a falling Perpetual Cumulative Volume Delta (CVD), while options data presents a mixed outlook with stable 25-Delta Skew but rising open interest and volatility spreads.

On-chain data reveals a slight decrease in active addresses and a dip in enthusiasm among short-term holders, suggesting a potential slowdown after a period of intense engagement.

Overall, while Bitcoin's rally and elevated unrealized profits indicate strength, market participants should watch for shifts in key indicators like UTXO profitability and on-chain activity, which could presage profit-taking and increased volatility moving forward.

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