Bitcoin’s Realized Profit Decrease Sparks Bullish Price Predictions
Bitcoin’s realized profits have decreased by $9 million since November 21, slowing down profit-taking among holders. This could lead to a potential rise in Bitcoin’s price towards $100,000, bolstered by increased retention of assets as indicated by a rise in Coins Holding Time. Analysts are optimistic, with predictions suggesting potential price targets upwards of $102,500, contingent on current trends continuing without a resurgence in realized profits.
Since November 21, Bitcoin (BTC) has remained close to the notable threshold of $100,000 without breaking through, primarily due to reduced realized profits among traders. According to analyses, Bitcoin’s realized profits plummeted from a peak of $10.58 million to $1.58 million, indicating a substantial profit-taking slowdown. This decline suggests a shift in holders’ behavior, as most Bitcoin investors have retreated from aggressively selling their assets in large quantities.
With the decrease in realized profits, there is potential for Bitcoin’s price to rebound, possibly moving towards the elusive $100,000 mark. This projection is substantiated by the Coins Holding Time indicator, which has risen by 65% over the past week, reflecting a trend where holders are opting to retain their Bitcoin instead of selling.
An analyst from CryptoQuant, IT Tech, supports this perspective, pointing out that selling pressure has not yet reached levels consistent with previous peaks. He remarked, “The green bars showing STH selling in profit have yet to reach levels seen during the previous $72,400 peak. This suggests that profit-taking pressure hasn’t peaked, leaving room for further upward movement in price.”
From a technical analysis standpoint, Bitcoin’s daily chart indicates that it is trading within a bullish ascending channel, which bodes well for future price increases. Additionally, the Supetrend indicator remains bullish, indicating that the price could exceed $99,780. If this upward momentum continues, Bitcoin may potentially approach $102,500. Nonetheless, should realized profits spike once again, forecasts may shift, and the price could retract to around $84,466.
Bitcoin’s dynamics have recently been influenced by realized profits and traders’ behavior in response to market fluctuations. Realized profit is an important metric indicating the value of Bitcoin sold post-price appreciation. As profits decline, it reflects diminished selling pressure and signals that many holders are choosing to maintain their investments rather than capitalizing on temporary price gains. The analysis utilizes various metrics like Coins Holding Time and technical indicators like Supetrend to assess market trends and predict potential future movements.
In summary, the recent decline in Bitcoin’s realized profits and the increase in holders’ retention suggest a reduced selling pressure among investors. This shift may provide the momentum needed for Bitcoin to potentially breach the $100,000 mark. Technical indicators and analyst insights further support a bullish outlook, yet the volatility of realized profits remains a critical factor influencing Bitcoin’s price trajectory in the near future.
Original Source: beincrypto.com
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