Bitcoin [BTC] recently broke and maintained a price above $65,000, creating a significant impact on investors.

This milestone marks that more than 90% of BTC holders are now in profit due to the strong price increase. However, this rapid increase could put short-term pressure on the value of Bitcoin.

Over 90% of Bitcoin Holders Are Now Profitable

According to a recent report from IntoTheBlock, more than 90% of Bitcoin holders would have made a profit if the cryptocurrency had surpassed $65,000—a threshold it has already surpassed.

At the time of writing, around 94% of holders are in the money. The last time such a high percentage was recorded was in July, showing the significance of this achievement.

Bitcoin crosses $65,000 mark

An analysis from TinTucBitcoin shows the bullish trend of Bitcoin. Currently, BTC is trading at $65,400, up 0.34%, continuing its steady climb from recent lows.

In the previous trading session, this cryptocurrency increased by more than 3%, pushing the price to around $65,177.

Technical indicators show the 50-day moving average (yellow) at $60,009, while the 200-day moving average (blue) is at $63,021. Bitcoin trading above both of these averages signals a bullish trend reversal.

The relative strength index (RSI) is currently at 65.49, close to overbought levels but still indicating strong buying momentum.

Consequences of price increase

The breakout above both moving averages, coupled with a rising RSI, suggests that Bitcoin is in a strong uptrend.

If this momentum continues, Bitcoin could test the next resistance levels between $67,000 and $70,000—areas where previous rallies have been rejected.

However, with RSI approaching overbought levels, a short-term correction could occur, which is normal in an uptrend.

While there may be pullbacks, as long as Bitcoin remains above its 50-day and 200-day moving averages, the overall trend remains bullish. These corrections can present buying opportunities for investors.

Historical data shows that in July, during a similar bullish rally, Bitcoin peaked at around $68,000 but failed to retest its all-time high (ATH) as sellers regained control of the market. This suggests caution is warranted as the current rally could face similar resistance.