Bitcoin Bull Run Sparks Surge in Profit-Taking, Mirroring $69,000 Peak Activity
Summary:
Bitcoin's recent price rise has led to a substantial increase in profit-taking, with levels rivaling its previous high of $69,000, as detailed by James Van Straten of CryptoSlate. The increase in profit is mainly driven by short-term holders (STHs), who have held their Bitcoin for 155 days or less. According to Van Straten's research, nearly $5 billion in Bitcoin has been transported from STHs to exchanges in preparation for sale between December 1 and 4. This pattern mirrors activity when Bitcoin hit its current record high two years ago.
The cryptocurrency Bitcoin (BTC) has experienced a surge in profit, matching its previous peak of $69,000, according to recent analysis. James Van Straten, a research and data analyst for CryptoSlate, pointed out the multi-billion dollar capital influx into exchanges on December 5. Bitcoin's price increase has greatly benefited long-term investors, resulting in 19-month high values.
Despite experienced investors maintaining their Bitcoin stocks, new investors, known as short-term holders (STHs), have been actively monetizing their venture. STHs are those who have held Bitcoin for 155 days or less and are typically more speculative in their investments. Their buying price has established a significant price range for Bitcoin in 2023.
With a nearly 15% increase in Bitcoin value over the past week, STHs are reconsidering their holdings, according to the data. Van Straten mentioned that the total transfer value between STHs and exchanges, indicating coins ready for sale, has approached $5 billion over the four days leading up to December 4. The analyst noticed a 7% rise, reaching a high of $38,800 this year by December 1, triggering the most significant profit-taking amongst STHs in recent times since November 2021.
Van Straten referred to Glassnode's on-chain analytics figures to confirm this. The recent profit-making among STHs is similar to the activity seen when Bitcoin value reached its highest level of $69,000 two years ago.
The continued rise in Bitcoin value could hint at a return to previous peak levels, driven by a mix of internal and external factors. Philip Swift, the founder of statistics tool Look Into Bitcoin, examined the hurdles of the Bitcoin bull market, referring to the Fibonacci retracement levels witnessed in prior Bitcoin bull markets.
Swift introduced his Golden Multiplier Ratio metric, crafted in 2019 to track price cycle peaks. He stated that lower Fibonacci levels have served as resistance in previous bull markets, with the current x1.6 level resting at $43,739 and climbing. According to Swift, higher levels have accurately spotted every Bitcoin cycle peak to date.
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Published At
12/5/2023 1:46:05 PM
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