Bitcoin faced significant sell pressure over the weekend, causing the price to drop below $70,000 once again. However, the short-term holder profitability has remained low, indicating a reduced risk of further sell-offs. Analyst Ali Martinez shared data showing that the current short-term holder profitability is at 3.35%, suggesting that investors are likely to hold onto their holdings until profit margins increase.
The chart displayed fluctuating profitability for short-term holders in recent weeks as Bitcoin struggled to stabilize. Despite this, over a longer period, short-term holders have seen positive returns. Compared to the beginning of June, investors are currently experiencing upside potential. However, profitability will need to increase further for investors to consider selling.
Martinez also offered insights into potential price movements for Bitcoin, predicting a local top around $89,200, representing a 28% increase from the current price. Another analysis pointed to a high Taker Buy Sell Ratio on the HTX Global Exchange, indicating strong bullish sentiment towards Bitcoin and the possibility of a new rally.
Despite these positive indicators, Bitcoin continues to face pressure from bears, with the price retracing most of its recent gains after reaching $71,000. The current price sits at $69,429, with a slight increase over the past week. Bitcoin remains the largest cryptocurrency by market cap, standing at $1.368 trillion.
The accompanying chart from Tradingview.com illustrates Bitcoin’s struggle to reclaim the $70,000 level. Overall, while short-term holder profitability remains low, potential for a surge in price exists based on analyst predictions and market sentiment. As Bitcoin navigates through current challenges, investors are closely watching for opportunities to capitalize on potential gains in the future.
