Bitcoin Needs $140K for Peak Profits: On-Chain Analysis

Bitcoin's price needs to reach $140,000 to match the peak profits experienced by long-term holders earlier this cycle, according to on-chain data analysis from CryptoQuant. This analysis uses the Market Value to Realized Value (MVRV) ratio to assess the profitability of long-term holders (those holding for at least six months). Currently, long-term holders are at approximately 220% gains, significantly lower than the 300% and 350% seen in March and December 2024, respectively. This discrepancy creates what CryptoQuant contributor Darkfost terms a “market magnet,” suggesting a pull towards the $140,000 mark to align unrealized profits with previous cycle highs. The data reveals that long-term investors have been taking profits as Bitcoin flirts with new highs, contributing to recent selling pressure. Their average cost basis is around $33,800, meaning Bitcoin needs to hit $140,000 to reach the profit levels of earlier peaks in the cycle. Despite this profit-taking, a super majority of Bitcoin investors still hold unrealized profits totaling $2.5 trillion, reflecting the market's recent rally. Analysts predict a post-breakout retest for Bitcoin after breaking a multi-week downtrend, suggesting the bull run might have several months left before a final surge potentially pushing BTC towards $140,000. Following this final push, a sharp peak and subsequent cool-down are anticipated, mirroring historical trends. The current market phase is characterized as a pause, with buyers and sellers assessing each other's positions, and the success of this potential surge hinges on whether demand is strong enough to drive Bitcoin to the “magnet-level” price.

(Source: https://www.newsbtc.com/news/140k-bitcoin-isnt-just-a-dream-anymore-on-chain-analytics-shows/)