In a recent Bitcoin price analysis news update, over 90% of the circulating BTC supply was profitable, as per CryptoQuant data.
According to analysts said this level often preceded periods of increased volatility.
At the same time, BlackRock added over $51 Million in BTC to its institutional fund wallets, showing continued accumulation despite near-term corrections.
Profitability Levels Raise Caution
Data showed that nine out of ten Bitcoin units traded above their cost basis at press time.
Analysts said this metric had reached historically elevated levels. When profitability climbed above 90% in previous cycles, both short-term and long-term pullbacks followed.
They explained that extreme profitability often encouraged holders to take gains. This behavior increased selling pressure and triggered corrective phases.
According to analyst observations, many investors saw these conditions as a sign of strength, but history suggested they also coincided with volatility spikes.
The pattern was visible in earlier cycles. Each time profitability levels approached these highs, Bitcoin experienced retracements before regaining upward momentum.
It was the same setup that was visible in 2025 as per Bitcoin price analysis observations noted by experts.
Bitcoin Price Analysis: BlackRock Expands its BTC Position
Institutional demand remained strong despite signals of overheated profitability. Blockchain records showed that BlackRock purchased around $51 Million in BTC through several transactions.
Transfers moved into wallets tied to the company’s IBIT fund, with Coinbase acting as facilitator.
In total, more than 450 BTC were deposited. Analysts said that such inflows during corrective phases suggested long-term conviction from institutional buyers.
Additionally, large firms’ accumulation reinforced Bitcoin’s perception as a strategic asset, regardless of short-term BTC price swings. BlackRock’s move followed a pattern seen across 2024 and into 2025.
Several institutions increased exposure during corrections, adding weight to the narrative that major funds considered Bitcoin an enduring allocation.
Bitcoin Price Tests Critical Range
The Bitcoin price traded around $110,000 at press time after facing resistance near $120,000 earlier in the month. Technical analysts pointed to a recurring weekly structure marked by consolidation phases followed by breakout rallies.
During 2024 and early 2025, similar corrections retraced into demand zones before recovering.
Analysts said the present correction was testing a significant range between $110,000 and $105,000. They described this as a decisive band for the medium-term trend.
If the support held, they projected a move toward $125,000, which they described as the next “weak high.”
That level represented a point where sellers previously overwhelmed buyers, making it a near-term target should demand stabilize.
However, analysts warned that a failure to defend the $110,000–$105,000 zone could open the door to deeper retracements.
Downside projections placed the next area of interest between $100,000 and $95,000. The weekly chart showed repeating accumulation structures.
As per Bitcoin price analysis, maintaining current support would fit that historical pattern, while a breakdown would mark a deviation with implications for the mid-term outlook.
Bitcoin Price Analysis Outlook for The Coming Weeks
The test of the $110,000 support range placed Bitcoin at an inflection point. Profitability metrics suggested the market was overheating, while institutional inflows signaled long-term confidence.
Technical patterns showed that holding the current zone would keep the broader uptrend intact.
Analysts said the market reaction in this range would define the medium-term direction. A rebound could set up another attempt toward the $125,000 level.
A breakdown could shift focus to $100,000 or below. At press time, the balance of these forces left Bitcoin trading near the middle of its critical structure.
Source: https://www.thecoinrepublic.com/2025/08/29/bitcoin-price-analysis-tests-110k-support-as-blackrock-adds-51m-btc/
