Cryptocurrency plunges under $103k marker due to identified profit-seekers by Glassnode data.
Bitcoin Slips after Soaring Past $105K, Profit-Taking Blamed
Bitcoin's meteoric rise to $105,000 has cooled off, with the cryptocurrency retreating to $103K. Analysts attribute this dip to profit-taking, as bullish sentiment brought about by promising trade deal developments wanes.
In the past few days, risk assets, including Bitcoin, have rallied, with Bitcoin surpassing $100K for the first time last week. This surge followed encouraging trade news and a White House announcement about a 90-day agreement to reduce reciprocal tariffs.
While Bitcoin's ascent sparks fresh interest, profit-taking is likely responsible for the recent setback. On-chain analytics firm Glassnode highlighted increased profit-taking, especially with the BTC Supply Mapping showing sustained demand, as the First-Time Buyers Relative Strength Index remains high.
However, momentum indicators suggest weakness, and profits takers are leading the charge. It's worth noting that historically, Bitcoin's price around $105,000 to $106,000 has been a level where long-term holders and whales tend to cash in, partly due to the Alpha Price threshold.
According to market data, the surge has generated significant realized profits for long-term holders, making it an opportune time to lock in gains. In fact, the current market conditions, with over 97% of the Bitcoin supply being profitable, take the pressure off holders to sell urgently.
However, the analysts at Bitfinex remain optimistic. They argue that macro conditions can help absorb any short-term dips, potentially setting the stage for a new leg toward fresh highs. This view is based on bullish indicators like capital rotation into BTC, as evidenced by the benchmark digital asset's realized cap hitting a new all-time high.
While profit-taking may cause temporary volatility, Bitcoin's long-term potential remains strong. External factors such as economic data could serve as catalysts for a rally if they meet or exceed market expectations. In other words, Bitcoin's voyage to fresh highs is not over yet.
Sources:
- Yahoo Finance
- Markets Insider
- Alphractal
- Glassnode
- Bitfinex
- The surge in Bitcoin's price past $100K, fueled by encouraging trade news, has led to a significant increase in realized profits for long-term holders.
- Despite the recent dip in Bitcoin's price to $103K due to profit-taking, macro conditions and capital rotation into BTC could absorb any short-term volatility, potentially setting the stage for a new leg toward fresh highs.
- On-chain analytics firm Glassnode has highlighted increased profit-taking, especially with the BTC Supply Mapping showing sustained demand, as the First-Time Buyers Relative Strength Index remains high.
- Bitcoin's ascent has spurred interest in various crypto-related areas, such as DEXs (decentralized exchanges), Tron, XRP, and ICOs (Initial Coin Offerings), as investors divert their attention toward the crypto finance sector and technology.
- As Bitcoin slips after soaring past $105K, long-term holders and whales tend to cash in around this level partly due to the Alpha Price threshold, causing temporary volatility in the market. Despite this, Bitcoin's long-term potential remains strong, making it an attractive option for investors looking towards the future.
