Bitcoin Short-Term Holder Profitability Low, Risk of Sell-Off Decreases
Over the weekend, Bitcoin faced mounting sell pressure that pushed the price below $70,000 once again. However, with the short-term holder profitability remaining low at just 3.35%, the risk of further sell-offs has significantly decreased.
Crypto analyst Ali Martinez shared new data on Monday showing the reduced risk of a sell-off. The chart indicates that short-term holders are unlikely to sell their holdings for profit at this time, as they are waiting for higher profit margins.
Despite fluctuations in profitability in recent weeks, short-term holders have seen positive upside compared to the start of June. However, for them to start selling again, profitability will need to increase.
Martinez also predicts that the next local top for Bitcoin could be around $89,200, a 28% increase from the current price of $69,400. The Taker Buy Sell Ratio on the HTX Global Exchange has also risen, indicating bullish sentiment that could drive the next rally.
While Bitcoin continues to struggle amid bearish pressure, it remains the largest cryptocurrency with a market cap of $1.368 trillion. The price is currently trading at $69,429, showing a 0.45% increase in the last week.
Overall, the data suggests that Bitcoin short-term holders are holding strong, with the risk of a sell-off decreasing as profitability remains low. Investors will be watching closely to see if the cryptocurrency can surge to new highs in the coming weeks.
