Potential Bitcoin Rally Could Stall as Holders in Profit Face Selling Pressure, Glassnode Warns
This week’s 10.60% increase in Bitcoin, the largest token by market capitalization, is probably paving the way for a record high in the weeks ahead. However, profit-taking may cause the anticipated march toward new highs to be sluggish. This is because, according to data that Glassnode tracks, 95% of the Bitcoin supply is in profit while only 5% is losing money. The latter indicates that profitable holders may be under pressure to sell their coins in a rising market. Historically, whenever the profit margin on supply has surpassed 94%, selling pressure has been applied to bitcoin, leading to price adjustments.
Bitcoin Rally Strengthened by $11 Billion in Realized Profits, Says Glassnode
According to Glassnode, long-term holders (LTH), who hold coins for at least 155 days, may be the ones making money, living up to their reputation as astute traders or those who speculate when values are low and sell when they are increasing. Considering that they together own 14 million BTC, LTHs currently hold only 500,000 BTC at a loss, which is a negligible portion. Short-term holders now possess 235,000 BTC at a loss, which is the lowest amount since March, when Bitcoin reached its peak.
A rise in realized profit over the previous week suggests that some investors are taking profits. According to Glassnode data, more than $11 billion in realized profit has occurred in just over a week, including $5.6 billion from October 8 alone. Bitcoin dominance is reaching new cycle highs and getting close to 60%, which was last observed in April 2021. These two indicators demonstrate the underlying strength of this rally.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment