Bitcoin on the brink: Short-term holders tighten market grip as $30,000 threshold looms

On Aug 9, 2023

Quick Take

Bitcoin (BTC), despite its volatility, has remained under the $30,000 threshold, an intriguing scenario attributed to its short-term holders. This group is currently reaping substantial profits, thereby sustaining the sell pressure. A striking sale of approximately 17,000 Bitcoins to exchanges was registered recently, marking this as a significant event in the annual financial calendar. Concurrently, there has been a noticeable decrease in profit-taking activity over the past few weeks, suggesting a possible change in future dynamics if Bitcoin surpasses the $30,000 mark, with a potential surge in profit-taking.

Turning our attention to the long-term holders (LTH), it becomes evident that there is currently no profit-taking taking place, as indicated by the black line in the data. The last significant profit-taking from this group traces back to April 2023, interestingly, around six months post the FTX collapse. This pattern could potentially underline a cautious approach from LTH, reflecting the broader market sentiments post such market disruptions.