Bitcoin Profit Taking Relatively Muted Amid $93K Rally – Can BTC Climb Higher?
15 November 2024 - 4:00AM
NEWSBTC
Bitcoin (BTC) recently reached a new all-time high (ATH) of
$93,477, as the leading digital asset inches closer to the highly
anticipated $100,000 target. Notably, the ongoing price rally has
seen relatively muted profit-taking, fueling hopes that BTC has
further room to surge. Low Profit-Taking For Bitcoin In Current
Cycle According to a recent report by Glassnode, the current BTC
price momentum is primarily driven by strong spot demand and rising
institutional interest. Particularly, the victory of Republican US
presidential candidate Donald Trump has added optimism to the
digital assets industry. Related Reading: Bitcoin Price Could Peak
In 200 Days, Before US Recession In Mid-2025, Report Says The
report highlights that over 95% of Bitcoin’s supply is currently in
profit. However, despite the high proportion of profitable holders,
profit-taking has remained relatively muted during this cycle.
Historically, monthly profit realization has typically ranged
between $30 and $50 billion during previous Bitcoin ATH cycles. The
current price discovery phase has seen about $20.4 billion in
realized profit. This relatively low profit-taking level in the
current BTC ATH cycle suggests further room for the BTC price to
rise, potentially reaching the $100,000 milestone before demand
wanes. The chart below shows the cost basis of new BTC investors,
along with upper and lower statistical bands. According to the
report, during an ATH phase, BTC’s price repeatedly tests the upper
bands as new investors enter the market at higher price points. As
can be inferred from the above chart, BTC’s current spot price of
$91,199 is just below its upper band of $94,900. Keeping track of
price movement between these bands can show when the market price
might be high enough to force existing holders to sell their
holdings. Excess Leverage Must Be Flushed Before $100,000 BTC While
BTC is trading less than 10% below the $100,000 level, industry
experts opine that excess leverage must be flushed out before the
top digital asset attempts to hit the 6-figure target. Related
Reading: Bitcoin To $100,000 By February 2025? Analyst Explains Why
Data from Coinglass shows that more than $718 million worth of
crypto contracts were liquidated in the past 24 hours, impacting
202,074 traders. Notably, contract liquidations were split
pretty evenly between longs and shorts – 49.93% vs 50.07%,
respectively – indicating that despite the strong bullish
sentiment, there is no clear trading advantage. Some industry
leaders remain optimistic about BTC’s future price action. In
October, the BTC mining firm CleanSpark CEO said that the premier
digital asset may peak at $200,000 in the next 18 months.
Similarly, BitMEX co-founder Arthur Hayes recently predicted that
BTC may hit $1 million under the Trump administration. BTC trades
at $91,199 at press time, up 3.9% in the past 24 hours. Featured
image from Unsplash, Charts from Glassnode and TradingView.com
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