Bitcoin Breaks $90K: Profitability Soars as On-Chain Metrics Turn Bullish

Bitcoin has now gone beyond the $90,000 landmark and that has bulls smiling. The price increase, besides being an increase in price, is acting to send something called a signal. That signal is one of strong conviction by investors. For some, it is a way of showing that these ‘signals’ are sometimes the best reason to buy. Here is a bit more about what is being signaled when it comes to the future of Bitcoin and who might be doing the buying. #Bitcoin $BTC just hit $90,000, and based on on-chain data from @intotheblock , the next key area of resistance is between $95,600 and $98,290! pic.twitter.com/tYDjUmTCfH — Ali (@ali_charts) April 22, 2025 Data from IntoTheBlock reveal something remarkable: 92% of all Bitcoin addresses are now in the money. That’s the highest this figure has been since the 2021 bull market—highest, in other words, since we’ve had this recent relief rally, which we’re calling a bull market. So, let’s run with that. And something else: Historic data tell us that when high levels of profitability are concentrated among holders of an asset, the conditions are ripe for a supply squeeze. Why? Because holders find it increasingly hard to part with something that is giving them such nice returns. According to @intotheblock #Bitcoin surges past $90,000! With 92% of all $BTC addresses now in profit the highest since 2021, we're seeing reduced selling pressure as holders prefer to keep their profitable positions. pic.twitter.com/R8DvQokYua — ALTCOIN D/GDDY {A.D}𓃵 (@Altcoin_daddy) April 23, 2025 Institutional Demand Surges, Exchange Balances Shrink One of the most telling indicators of this renewed enthusiasm is how much Bitcoin is being pulled from centralized exchanges. Over the past week alone, more than 17,000 BTC have been withdrawn. This signals that investors are increasingly choosing to store their assets in cold wallets instead of keeping them readily available for trading. Such behavior often suggests long-term confidence, especially among large holders who are choosing a custodial approach to their BTC. In fact, one might say that pulling BTC from exchanges is a bullish indicator. Concurrently, spot exchange-traded funds (ETFs) for Bitcoin in the U.S. are gathering impressive inflows. On April 22, spot Bitcoin ETFs recorded an eye-popping $936 million in net inflows—the third straight day of solid demand for Bitcoin ETFs. This persistent interest from institutional players suggests that traditional finance is making a rush for Bitcoin, with the effects felt increasingly on open-market supply. Over 17,000 #Bitcoin $BTC have been pulled from exchanges in the past week! pic.twitter.com/P5BWuDsKwb — Ali (@ali_charts) April 23, 2025 At the same time, the derivatives market for Bitcoin has seen a substantial increase in open interest, with the total now exceeding $34 billion at several major exchanges. This recent climb appears to be largely fueled by new buying, with investors now largely in leveraged positions. The next big move for Bitcoin could very well be a leveraged one, as price discovery continues in this relatively new asset class. The dip in the price might also be a cause of concern for investors in leveraged positions. On April 22, Bitcoin spot ETFs recorded a total net inflow of $936 million, net inflows for three consecutive days. Ethereum spot ETFs saw a total net inflow of $38.74 million, with none of the nine ETFs registering net outflows. https://t.co/SF4brkl9iI — Wu Blockchain (@WuBlockchain) April 23, 2025 The world’s largest cryptocurrency exchange, Binance, is showing particularly powerful signs of a bullish trend. The net taker volume on the platform—an indicator that measures how much in aggressive buy orders the exchange is matching—just tapped a monthly high of almost $62 million. This is nothing short of an invitation for traders to start an incipient breakout rally. After all, it’s an invite that represents a near 30% increase in volume from last month’s total. #Bitcoin $BTC open interest across all exchanges has surged to a new monthly high, topping $34 billion. Leverage is heating up! pic.twitter.com/Rqtr2IjNWD — Ali (@ali_charts) April 22, 2025 Next Stop: Resistance Between $95K and $98K As we move forward, on-chain data indicates the next major resistance band from $95,600 to $98,290. This price area should serve as a test of whether Bitcoin can keep climbing. If it bursts beyond that range in a big way, we could see it head toward those so-far elusive six-figure price points. Nevertheless, as with everything in the crypto markets, no asset moves in a straight line. These indicators—balanced exchanges, ETF buying, and a booming OI—are working in harmony. But we must remember that when a market is this bullish, it can become overly euphoric and overly leveraged. And that means volatility—possibly even a sharp pullback—has to be in the cards. With that stated, the current trend is unmistakable: not only is Bitcoin reaching new heights in its price, but it is also delivering some pretty solid fundamentals. The vast majority of people who hold Bitcoin are in the money and choosing to hold, and the steady inflow of institutional capital has some people talking about a price breakout that might just be a prelude to a return to the $100,000 prices of 2021. With the next resistance levels now in sight, everyone is paying close attention to whether this bullish momentum can take the world’s top cryptocurrency past its earlier limits and into a new price-discovery phase. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. 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