Bitcoin has retraced back to the $71,000 level, as on-chain data shows profit-taking behavior among investors has once again witnessed a spike.
Bitcoin Realized Profit Crossed $20M/Hour During RallyBelow is the chart shared by Glassnode that shows how the 24-hour simple moving average (SMA) of this Bitcoin metric has fluctuated over the last few months.
During the spikes, profit-taking exceeded $20 million per hour. Since this investor is selling, BTC has retraced back below $71,000, indicating that the profit realization likely played a role in the rally topping out.
This is actually a pattern that has been witnessed a few times during the recent consolidation range already. “Every approach to the $70k–$ 80k band faces thin liquidity and profit-taking pressure, capping the bounce,” noted the analytics firm. Given that the latest rally has also been obstructed by profit-taking, it would appear that fresh liquidity capable of absorbing the selling pressure is still absent from the market.
As displayed in the above graph, the Bitcoin Number of Addresses in Loss, an indicator tracking wallets holding coins at a net unrealized loss, has seen some temporary declines alongside price surges, but as BTC has failed to maintain any recovery, the indicator has kept touching high levels.
Currently, there are 13.5 million addresses sitting in a loss. “This indicates that a meaningful portion of the network acquired coins above the current spot price,” explained the analytics firm. In the scenario that BTC’s current pullback continues, the metric could reach back to the highs above 16 million from earlier in the year.
BTC PriceBitcoin is back at $70,800 following its pullback over the weekend.
