Understanding the prevailing market sentiment and responding to the question of where we currently stand in the cycle is always the best approach for short-term traders. Therefore, it is advisable to consider two key metrics that estimate the average of short-term Bitcoin holders alongside their profit margins compared to the current price.
The average price paid for Bitcoin by holders(Realized price) with less than a 6-month holding period is currently in the $33,000 range, and the price of Bitcoin has undergone a minor correction to around $43,000. Additionally, the current correction has led to a 6% reduction in the profit margin of short-term holders.
In general, whenever the price sharply inclines above the average of short-term holders and price fluctuations lead to a decrease in their average profit margins at key price levels, cyclical corrections become quite common.
Considering the substantial profitability and resilient nature of short-term holders, there is a high likelihood of a price correction in the current conditions, similar to the 2019 cycle, for short-term gains.
Written by Crazzyblockk
