Bitcoin's Surge Halts as Long-Term Investors Cash In
After peaking at $123,000, Bitcoin sees a decrease, largely driven by long-term holders realizing substantial profits.
Key Insights:
- Bitcoin experienced a remarkable rise to $123,000 before dipping below $117,000, indicating a scarcity of transactions in the $110,000 to $116,000 price range.
- Long-term holders cashed out $1.96 billion in profits, marking a significant profit realization day, as reported by Glassnode.
Current Market Situation
Bitcoin has retraced from its record high of $123,000 and is witnessing a price hover around $117,000 following substantial profit-taking activities over the weekend. According to Glassnode’s observations, over the last day, investors generated approximately $3.5 billion in profits, with long-term holders—those who have held their assets for more than 155 days—accounting for 56% of this total.
These substantial movements caused a notable supply gap due to limited trading in the $110,000 - $116,000 bracket, raising concerns about potential volatility in upcoming trading sessions.
Bitcoin Price and Supply Gap
UTXO Realized Price Distribution
Conclusion
With minimal supply levels between $110,000 and $116,000, the market is susceptible to quick shifts, suggesting traders should remain vigilant in the current climate. Further fluctuations may arise as more long-term holders assess their investment strategies.
