During the weekend, Bitcoin suffered from increasing selling pressure that pushed the price below $70,000. once again. However, as the profitability of short-term holdings remains low at present, the risk of the pioneer cryptocurrency experiencing further sell-off has significantly decreased.
Profitability of short-term Bitcoin holders at 3.35%
Crypto analyst Ali Martinez soothed the nerves of Bitcoin investors with new data this shows a reduced risk of selling. The chart released early Monday shows that short-term profitability for Bitcoin holders remained weak at the start of the new week.
According to Martinez, the low profitability, which currently stands at just 3.35%, means that there is currently minimal risk of liquidation. Indeed, short-term investors will likely wait for higher profit margins before jumping in. sell their assets for profit.
The chart shows that over the past few weeks, the short-term profitability of Bitcoin holders has fluctuated wildly, as the price of Bitcoin had difficulty finding his place. However, when looking at profitability over a longer period of time, it appears that short-term holders have done quite well for themselves.
#Bitcoin Short-term holders see a profit margin of 3.35%, indicating minimal risk of $BTC sale! pic.twitter.com/ohl3lXUSl9
– Ali (@ali_charts) June 10, 2024
Compared to the short-term profitability of holders at the beginning of June, these investors have recently seen a positive increase. However, compared to previous sales trends, profitability will need to increase for these short-term investors to start selling again.
Can BTC go higher from here?
In a previous analysis of the price of Bitcoincrypto analyst Ali Martinez has traced where he expects the price of BTC to go from here. The analysis showed the cryptocurrency’s movements over the past year, with various corrections and spikes.
Based on this data, the crypto analyst believes that the next local peak in Bitcoin price could be around the $89,200 level. Of current price around $69,400this would represent a 28% price increase and a new all-time high for the digital asset.
Furthermore, another job by the analyst shows that the Taker Buy Sell ratio on the HTX Global Exchange has reached 730. This means that there is lots of bullish sentiment towards cryptocurrency and the analyst believes that this could lead to the next rally.
For the moment, the price of Bitcoin continues to struggle with increasing bear pressure. After hitting $71,000 last week, the price has since retraced most of its gains. Currently trading at $69,429 at the time of writing, it saw an increase of 0.45% in the past week. However, it remains the largest cryptocurrency with a market capitalization of $1.368 trillion.
Featured image created with Dall.E, chart from Tradingview.com
