Since last week, Bitcoin (BTC) has been hovering close to, but unable to reach, the US$100,000 mark. BeInCrypto analysts attribute this to the increase in realized profits.
Recent data shows that profit-taking activity has slowed down. What does this mean for the price of Bitcoin?
Bitcoin Holders Retreat From Recording Gains
Data from Glassnode shows that Bitcoin’s realized profits soared to $10.58 million on Thursday (21). However, at the time of writing, the figure had fallen to $1.58 million, a difference of $9 million.
As the name suggests, realized profit is the value of coins sold after their price increases. Therefore, when this metric rises, it becomes challenging for the cryptocurrency to continue its rise.
However, as profit taking has fallen, most BTC holders have stopped selling in large volumes. If this trend continues, the price of Bitcoin could recover and likely climb towards the $100,000 mark.
Bitcoin Realized Profit. Source: Glassnode
This sentiment is further supported by the Coin Holding Time metric, which tracks how long a cryptocurrency has been held without being traded or sold.
When the Coin Holding Time decreases, it means that holders of a particular crypto are selling. If this continues, the trend becomes bearish. However, in the last seven days, the Coin Holding Time of BTC has increased by 65%.
Bitcoin Coin Holding Time. Source: IntoTheBlock
This increase reinforces the trend indicated by Bitcoin’s profit taking that selling pressure has eased. Interestingly, IT Tech, an analyst at CryptoQuant, agrees with the thesis that Bitcoin may continue to rise.
The green bars showing STH selling at a profit have not yet reached the levels seen during the previous peak of $72,400. This suggests that profit-taking pressure has not peaked, leaving room for further upward movement in the price, IT Tech said.
BTC Price Prediction: $102,500 Seems Near
On the daily chart, BTC continues to trade within an ascending channel, suggesting it has the potential to move higher.
BeInCrypto also noted that the Supertrend indicator remained bullish. The Supertrend is a technical indicator used to identify the direction in which an asset is moving.
If the red part of the indicator is above the price, the trend is bearish and the price may decline. However, since the green area is below the price, the value may rise above $99,780. If this is the case, the price of Bitcoin may rise to $102,500.
Bitcoin Daily Analysis. Source: TradingView
On the other hand, if Bitcoin’s profit-taking surges again, this may not happen. Instead, the value could fall to $84,466.
The article Realized profits fall and Bitcoin could break $100,000 was first seen on BeInCrypto Brazil.
