Bitcoin (BTC) is witnessing significant profit-taking activities, especially by its short-term holders.
The digital currency, currently trading at $68,740.53, has shown remarkable resilience and growth in recent months.
Bitcoin (BTC) is witnessing significant profit-taking activities, especially by its short-term holders.
The digital currency, currently trading at $68,740.53, has shown remarkable resilience and growth in recent months.
However, according to CryptoQuant, on-chain data and market analysis indicate a notable profit-taking trend among investors who have held BTC for less than five months. data.
The Spent Product Profit Ratio (SOPR) has indicated significant movement that parallels the profit-taking trends seen during previous bull market peaks.
Short-term investors capitalize on gains
Analysis of the SOPR metric reveals that short-term BTC holders have been actively taking profits, a move compared to previous bull market peaks.
This trend marks a pivotal moment for Bitcoin, echoing the sentiments of the market’s all-time highs. Crypto Dan highlights: “This move is something that only happens once every few years,” emphasizing the rarity and importance of the current market dynamics.
Despite the potential implications of this trend, the launch of a Bitcoin spot ETF and the expected entry of institutional and individual investors present a complex context, making it difficult to interpret these profit-taking activities as a definitive peak of the current market. bullish.
The analyst maintains that Bitcoin is poised for a strong resurgence in 2024 after a brief period of correction.
The resilience of Bitcoin
Prominent cryptocurrency expert James Check, better known as @Checkmatey on social media, has provided more information in market behavior.
By analyzing the relationship between market value and realized value (MVRV) and the realized price of Bitcoin, Check points out the psychological pricing models that influence investors’ decisions. He notes that the +1 standard deviation level, currently at $70,800, serves as a trigger for many investors to lock in their profits.
This led to the reintroduction of approximately 735,000 BTC to the market, of which an estimated 60% came from the Grayscale Bitcoin Trust (GBTC) and the remainder from individual holders.
Despite this selling activity, the Bitcoin market has only seen a 20% correction from the FTX lows, showing the strength and demand-driven nature of the current bull market. “This is one of the strongest demand-driven BTC bull markets in history,” he added.
