Bitcoin sell-off risk drops sharply as short-term holder profits remain low
Bitcoin has come under increasing selling pressure over the weekend, with the price once again falling below $70,000. However, as short-term holding profitability remains low at the moment, the risk of the pioneer cryptocurrency suffering a further sell-off has been significantly reduced.
The profit rate of short-term Bitcoin holders is 3.35% 🌟Small circle Liu, home: wei9809800
Cryptocurrency analyst Ali Martinez calmed nervous Bitcoin investors by releasing new data showing a reduced risk of selling. A chart released early Monday morning showed that profitability for short-term Bitcoin holders remained low as we entered the new week.
Martinez said the current profit margin is just 3.35%, which means there is little risk of selling at the moment. This is because short-term investors may wait for higher profit margins before starting to sell their holdings to take profits.
The chart shows that profitability for short-term Bitcoin holders has fluctuated wildly over the past few weeks as the price of Bitcoin has struggled to gain footing. However, looking at profitability over longer periods, short-term holders appear to be doing quite well.
These investors have recently seen positive upside compared to the profitability of short-term holders in early June. However, profitability must improve compared to the previous selling trend before these short-term investors start selling again.
Can BTC soar from here?
In a previous analysis of Bitcoin price, cryptocurrency analyst Ali Martinez has predicted where BTC price is headed. The analysis showed the cryptocurrency’s trajectory over the past year, including various corrections and peaks.
Based on this data, cryptocurrency analysts believe that the next local high for Bitcoin price could be around $89,200. From the current price of around $69,400, this would be a 28% price increase and a new all-time high for the digital asset.
Additionally, another article by the analyst shows that the Taker Buy/Sell ratio on HTX Global Exchange is as high as 730. This means that there is a lot of bullish sentiment towards cryptocurrencies, which the analyst believes could drive the next rally.
Currently, Bitcoin price is struggling amid growing bearish pressure. After reaching $71,000 last week, the price has given back most of its gains. As of writing, Bitcoin is currently trading at $69,429, up 0.45% last week. However, it remains the largest cryptocurrency with a market cap of $1.368 trillion.
