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Bitcoin Network Sees Rising Profit-taking as BTC’s Price Shows Signs of Weakness
Following a period of stability above the $107,000 price mark, Bitcoin has finally dropped below this key level, triggering a bearish movement to the $105,000 threshold. This decline is being accompanied by an increase in profit-taking among investors.
According to recent reports, the Bitcoin network has witnessed a significant surge in profit-taking activity, as investors seek to lock in their gains and avoid potential losses. The data suggests that this increased profit-taking coincides with the falling price of BTC.
The figures provided by Glassnode, a prominent on-chain data analytics firm, indicate a sharp rise in the amount of Bitcoin realized profits. In fact, on Monday, this metric rose to a staggering $2.4 billion. Additionally, it has been noted that the 7-day Simple Moving Average (SMA) for realized profits reached a value of $1.52 billion.
In comparison, the data also highlights that this is above the Year-To-Date (YTD) average, which currently stands at approximately $1.4 billion. However, the figures are still below the peaks seen from November to December last year, when they reached as high as $4 billion to $5 billion.
The surge in profit-taking is reportedly being driven primarily by short-term or retail investors who have been selling their coins and taking their profits. This can be viewed as a sign that confidence in the market has waned, further reinforcing the idea that Bitcoin’s recent price movements are not sustainable.
It is also important to note that the amount of long-term holders’ unrealized losses continues to fall.
Source: bitcoinist.com
