The unrealized gains of institutional investors and Bitcoin ETF owners are minimal, implying that they may not sell Bitcoins in large quantities soon. Does this mean that the recent dip below $60,000 was the lowest price point for Bitcoin in the short term?
Bitcoin ETF holders only up 1.6% in unrealized profit
Investors owning between 1,000 and 1,550 Bitcoins (short-term Bitcoin whales) currently have a modest 1.6% profit on their investments based on the latest data from CryptoQuant. These investors have held onto their Bitcoins for up to six months.
Instead, the group of older whales, who have held more than 1,000 BTC for over 155 days, currently enjoy a significant profit of 223%, as reported by Ki Young Ju, the founder and CEO of CryptoQuant. In his April 19 blog post, Ju shared this information.
“Not enough profit to end this cycle, [in my opinion].”
Small-scale Bitcoin miners have seen their profits double (131% increase), whereas larger mining companies have only experienced a gain of 81%. Surprisingly, the top five mining corporations, despite substantial unrealized profits, have chosen not to sell in preparation for the upcoming Bitcoin halving event.
In Q1 2024, the top five Bitcoin mining companies saw their sales drop to a two-year minimum, selling around 2,000 BTC collectively as per the data from Bitwise’s April 10 report.
On the 16th and 19th of April, Bitcoin’s price dipped below the $60,000 mark. However, it recovered and is now aiming for $65,000 once more. This price fluctuation has technicians speculating that Bitcoin may have created a “double bottom” formation.
After a recent drop in price, Bitcoin’s key technical indicators have shifted back to neutral levels. For instance, its daily relative strength index (RSI) is now at 46, indicating that the asset’s price is neither overbought nor oversold, down from the overbought level of 76 on March 17th.
An often-used technical analysis tool, the Relative Strength Index (RSI), helps determine if an asset’s price has been underbid (oversold) or overvalued (overbought) by examining the size of recent price fluctuations.
Is the Bitcoin bottom in?
Bitcoin’s fall beneath $60,000 could indicate market bottom”)
“Very high chance that was the local bottom.”
The Bitcoin price has recently surpassed a notable boundary on the 4-hour chart. This observation, shared by well-known cryptocurrency trader Satoshi Flipper in a recent Reddit post on April 19, implies that the next potential target could be $72,000.
In simpler terms, the amount of money flowing into U.S. Bitcoin ETFs from institutions has gone reversed and turned into withdrawals during the week of Bitcoin’s halving event. A total of approximately $147 million was taken out of these ten ETFs on April 18th, as reported by Dune.
“The decrease in Bitcoin ETF inflows caused its price to drop, but Denis Petrovcic of Blocksquare expects a bullish turn around after the halving, as reported by CryptoMoon.”)
“While some might anticipate a drop post-halving, the sustained institutional interest and decreased block rewards should keep BTC prices stable or slightly bullish, avoiding the typical ‘sell the news’ fallout.”
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2024-04-19 15:47