Bitcoin [BTC] has been in the hands of bulls for the past three weeks, pushing the price above $64,000. This comes on the back of a new wave of optimism, but should you consider taking profits at this price level?
While Bitcoin bulls have performed admirably, the current price is in the same area that created presale pressure. Recent days have seen signs of resistance above $64,000. Furthermore, the majority of Bitcoin investors, about 84% above $63,000, are in the black.
This suggests that BTC could be vulnerable to a sharp decline if a bearish event occurs. However, a series of recent events have led many to expect that BTC could reach $80,000 this time. Now, many are wondering whether to continue holding BTC or take profits?
Are long-term investors still optimistic?
Recent CryptoQuant analysis suggests that many long-term Bitcoin investors are no longer moving their coins. This suggests that they are not taking profits, which could protect BTC from selling pressure.
This could also help BTC prices continue to rise in the coming days or weeks if there is enough demand to push the price up.
CryptoQuant’s analysis also suggested that Miner capitulation could be the reason for long-term investors selling. However, data shows that Miner reserves have been steadily increasing over the past five days.
Increasing Miners' reserves show that they are also choosing to hold their Coins, anticipating higher prices.
But what about short-term selling pressure? While the current price level creates some resistance, exchange flow data shows that demand still outweighs selling pressure.
In the past 24 hours, the amount of Bitcoin flowing out of the exchange was 13,601 BTC, higher than the 11,087 BTC flowing into the exchange.
However, it is worth noting that flows on the exchange have slowed over the past three days. They have dropped to levels that would normally trigger a transition, suggesting that a change could be coming in the coming days.
In summary, Bitcoin's previous price action saw strong selling pressure above $60,000. This does not appear to be the case with the most recent rally.
This suggests growing confidence, fueled by expectations of recent liquidity inflows into the market.
