99% of Bitcoin UTXOs Are in Profit, Triggering Discussions About Potential Profit-Taking

CryptoQuant, a leading on-chain analytics provider, on May 27 revealed that 99% of Bitcoin's UTXOs are currently in profit.

CryptoQuant, a leading on-chain analytics provider, has revealed that 99% of Bitcoin’s (BTC) UTXOs are currently in profit. This metric, often associated with peak bullish sentiment, has triggered discussions among analysts about potential profit-taking and investor behaviour.

As Bitcoin trades close to record highs, key on-chain data signals a possible market euphoria phase. While momentum remains strong, some experts advise caution due to external macroeconomic pressures and technical indicators.

99% UTXOs In Profit Raise Euphoria Concerns

The 99% UTXO profit signal suggests that nearly all Bitcoin holders are sitting on gains. UTXOs, or Unspent Transaction Outputs, represent Bitcoin that hasn’t been moved since it was last received. They help measure the share of BTC that is in unrealized profit.

According to CryptoQuant contributor Darkfost, this level has historically coincided with market tops or euphoric phases. “When this 99% signal drops, unrealized profits shrink and can trigger more profit-taking,” said Darkfost.

This often causes latecomers to exit at a loss. Although the signal points to growing confidence, it also flags the risk of sharp sell-offs if sentiment shifts. High levels of unrealized gains may tempt traders to lock in profits, increasing volatility.

Bitcoin Trades Strongly Above Key Technical Levels

Bitcoin is trading around $109,679, close to its all-time high. The price recently rebounded off the 100-SMA support near $105,586. It now floats above the 34-EMA at $108,280, reinforcing bullish momentum.

Technical indicators show a strong uptrend. All major moving averages align to the upside. The $103,600 level, once major resistance, now serves as a stable support zone. As long as BTC trades above this level, the broader uptrend stays intact.

Immediate resistance sits between $110,200 and $112,000. A break above this zone could push BTC toward the $120,000 mark. Analysts view this range as critical for confirming the next upward leg.

Market Momentum Grows Amid Uncertain Macro Landscape

While technical signals remain bullish, broader market sentiment appears mixed. The macroeconomic backdrop, including policy uncertainty from the Trump administration, may hold back full risk-on behaviour.

Investors are closely monitoring inflation data, interest rate forecasts, and geopolitical tensions. These factors could influence whether the market transitions from optimism to full-blown euphoria.

Even with 99% of UTXOs in profit, historical data suggests caution. Past cycles show that euphoric signals often precede heightened volatility and sudden corrections.

What To Watch: Key Levels And Behaviour Triggers

Bitcoin traders are eyeing $110,200 as the next breakout zone. Sustained trading above $108,000 could strengthen bullish momentum. A rally above resistance may trigger fresh inflows and renewed investor confidence.

Also, watch for changes in UTXO metrics. A dip from the 99% profit level may signal shifting sentiment and increased risk of profit-taking. This often pressures weaker hands to capitulate, leading to temporary corrections.

Technical patterns and moving averages will also shape the short-term outlook. The 100-SMA and 34-EMA remain critical support markers. As long as BTC holds above these, the bullish structure remains intact.

Also, monitor activity related to DeFi sectors where capital flow may reflect wider market appetite. Behaviour in altcoin sectors often mirrors or anticipates shifts in Bitcoin sentiment.

Bitcoin maintains bullish momentum, backed by strong technical and on-chain signals. The 99% UTXO profit reading adds a historic level of unrealized gains, underscoring market strength.

However, such signals also warrant caution. Analysts urge watching for behavioural shifts that could trigger sell-offs. If Bitcoin breaks above $112,000, a move toward $120,000 appears likely. The coming sessions will test whether momentum turns into euphoria or prompts the next wave of volatility.