As a seasoned researcher who has witnessed the rise and fall of various digital assets, I find this recent Bitcoin trend quite intriguing. The mass profit-taking by short-term holders (STHs) at the current price levels is reminiscent of a classic case of ‘buy low, sell high.’ It’s like watching a well-orchestrated dance, where everyone follows the same rhythm but for different reasons.
As a financial analyst, I’ve noticed a surge in profit-taking among Bitcoin (BTC) speculators, driving the market to reach three-month high prices, with me observing this trend myself.
Information provided by the on-chain analysis tool, Glassnode, indicates that short-term Bitcoin holders are taking advantage of the recent increase in Bitcoin’s price beyond $65,000 by selling their Bitcoins.
Bitcoin short-term holders eye profit protection
Inept Bitcoin investors, having been part of the market for a short period (less than 155 days), are actively cashing out their profits at present prices.
According to Glassnode, the quantity of Bitcoin transferred from STH wallets to the prominent exchange, Binance, reached its highest level since Bitcoin’s value against the US Dollar hit an all-time peak of $73,800 in March, on October 14th.
In total, Binance saw STH inflows of 7,127 BTC (approximately $480 million).
Based on data from significant exchanges followed by Glassnode, the daily counts this week are comparable to those seen around early June, indicating a notable increase in activity.
Examining the financial stability of certain entities, the company emphasized their robust profit margins, which have brought about a feeling of achievement following a period where prices remained relatively stable for several months.
In the recent analysis posted on X, it was noted that Short-Term Traders are currently leading in terms of profits, as their Profit/Loss ratio stands at approximately 1.2.
“This metric has recently broken 1 standard deviation above its 90-day mean, signaling a potential positive shift in investor sentiment.”
BTC price research sees “heightened volatility”
According to CryptoMoon’s report, the mood among Bitcoin investors has been unpredictable this month, leading to significant changes in their investment levels due to relatively small fluctuations in the market.
Simultaneously, in more recent times, the biggest category of Bitcoin “giant” investors have accumulated approximately 1.5 million Bitcoins.
Moving forward, Glassnode pointed out that just as the desire for Bitcoin (BTC) has generally decreased from its peaks in March, the amount of available BTC has also diminished.
In their most recent newsletter, “The Week Onchain,” they emphasized that the gap between supply and demand is expanding significantly.
“The demand side of the market has declined markedly since the March ATH, while several measures of the ‘active supply’ continue to compress and constrict. With respect to historical precedence, prior examples of acute tightness across the Bitcoin supply side have been a precursor for a regime of heightened volatility.”
Among the accompanying charts was confirmation of STHs’ low unrealized losses.
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2024-10-16 13:29