Over 75% of Bitcoin Short-term Holders Are in Profit
BITmarkets Team
Jul 29, 2024
Currently, 75% of short-term Bitcoin holders are seeing profits, potentially adding momentum to Bitcoin’s price rise.
This is attributed to Bitcoin’s recent rally, as detailed in a July 24 report by Glassnode:
“This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit. This can be seen within the STH-MVRV metric, which has now recovered above the break-even level of 1.0.”
The price increase offers significant relief for short-term holders, a group that had over 90% of its supply in loss during late July.
Short-term holders are often used as a measure to assess Bitcoin demand and recent buying trends.
Bitcoin’s price maintained above a critical support level, despite a $3.9 billion BTC futures expiry that risked lowering it to $63,000.
Following this rise, Bitcoin needs to stay above the current $65,000 mark, which serves as a crucial support, according to popular crypto analyst Rekt Capital, who mentioned in a July 26 X post:
“The retest was successful. Bitcoin has confirmed $65,000 as support. Price will now continue to occupy the $65000-$71500 region (red).”
Despite the optimistic price recovery, Bitcoin encounters significant resistance at the $68,000 psychological mark.
Nearly $700 million in cumulative leveraged short positions could be liquidated across all exchanges if Bitcoin surpasses the $68,000 level, according to CoinGlass data.
Short liquidations would exceed $1 billion above the $68,500 level, but reaching this point depends on inflows from US spot Bitcoin exchange-traded funds (ETFs).
Inflows into US spot Bitcoin ETFs have been declining since July 23, amounting to $31.1 million in cumulative inflows by July 25, according to Farside Investors data.
Sources:
https://cointelegraph.com/news/bitcoin-75-percent-short-term-holders-profit-67k
https://insights.glassnode.com/the-week-onchain-week-30-2024/
https://x.com/rektcapital/status/1816749734268149839/photo/1