The major cryptocurrency has failed to stay above $23,000 and Microsoft's mixed results released yesterday may weigh on Wall Street sentiments. US indices contracts are under pressure today.
- According to data from Glassnode, the number of short-term investors (STH -Short Term Holders) in profit has increased exponentially to levels last seen in November 2021, raising concerns about supply pressures if new investors or long-term holders are unable to fully absorb the BTC being sold.
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Create account Try a demo Download mobile app Download mobile appMore than 97.5% of short-term investors are currently in profit, the first time since Bitcoin reached ATH, in the fall of 2021. When such a huge percentage of new investors are in profit, the chances of buyers being exhausted almost exponentially increase heralding at least a correction or a return to the main trend (a similar but opposite situation occurs when the number of new investors in loss exceeds 97.5%). The probability of distribution at current prices is increasing. Source: Glassnode
Assessing the profitability and behavior of short-term holders does not give a complete assessment of the BTC market. The majority of long-term holders (LTH - Long Term Holders) who purchased BTC in 2021 - 2022 are still at a loss. The MVRV indicator compares the price of their purchases with the spot price and allows an assessment of unrealized profit or loss. After more than half a year, the price of BTC has climbed slightly above the 'cost base' of long-term investors at $22,600. However it's still uncertain how much LTH addresses will use current levels to sell BTC and exit at 'break evens' levels. Source: Glassnode
Bitcoin price, D1 interval. The RSI indicator is weakening and retreating to the vicinity of 80 points. Source: xStation5
