Bitcoin Retraces Back From $30,000 As Profit Taking Spikes
August 09 2023 - 8:00AM
NEWSBTC
Bitcoin had surged above $30,000 earlier during the past day but
has since observed a retrace as profit-taking from traders has
spiked. Bitcoin Profit-Taking Volume Is Currently More Than Twice
The Loss-Taking One Bitcoin showed some promising signs of breaking
away from its stagnation earlier during the past 24-hour period, as
the cryptocurrency’s price managed to make a sharp recovery towards
the $30,000 mark. This surge, however, couldn’t last for too long,
as the cryptocurrency has already slipped to the $29,700 level. BTC
has seen some rise during the past day | Source: BTCUSD on
TradingView So far, Bitcoin has been able to retain a lot of the
recovery despite this pullback, as the asset’s price is still
significantly above the $29,000 level it had been consolidating at
prior to this move. From the above chart, it’s visible that the
current recovery surge looks quite similar to the one seen around
the start of the month. This rally also died off at the $30,000
level and the price slid off, until it eventually ended up slumping
back to sideways movement around the $29,000 mark. Related Reading:
Litecoin Long-Term Holders Smartly Exited Before Halving, Data
Shows It would appear that the $30,000 level was acting as a major
source of resistance for the cryptocurrency back then, and it seems
that its role hasn’t changed this time either. There is one thing
different this time, however, and that is the level of
profit-taking that the investors are displaying. According to data
from the on-chain analytics firm Santiment, the profit-taking in
the market has observed a sharp increase as this rally has
occurred. The value of the metric seems to have been quite high
recently | Source: Santiment on X In the above graph, the data for
the “ratio of daily on-chain transaction volume in profit to loss”
metric is shown, which keeps track of how the profit-taking volume
in the Bitcoin market compares with the loss-taking volume right
now. Clearly, this indicator has surged to some pretty high levels,
meaning that the profit realization is far outweighing the loss
realization at the moment. It’s not uncommon for this behavior to
be seen during rallies, as some investors would want to quickly
jump on the profitable opportunity while it’s still there. This
scale of the profit-taking, however, may be worrying. At the
current level of the indicator, the profit-taking volume is more
than double the loss-taking volume. Related Reading: Bitcoin Miners
Show Accumulation Again, Bullish Sign? As can be seen from the
graph, the metric had instead remained relatively muted when the
aforementioned recovery rally of a similar scale had taken place
earlier in the month. This difference in behavior between the two
Bitcoin price surges may be a reflection of how the investors have
perceived each move. Earlier, they may have been more hopeful for
further price rise, so they may not have been too keen on
harvesting their profits just yet. This time, however, the holders
may be thinking that this rise will die out like the previous one
as well, so they are using the opportunity to quickly exit from the
market. Featured image from Maxim Hopman on Unsplash.com, charts
from TradingView.com, Santiment.net
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