Bitcoin Short-Term Holder Sales Near $5B as Profit-Taking Mimics 2021

Mass Profit-Taking Event Hits Bitcoin

Bitcoin (BTC) has experienced a significant profit-taking event that rivals its all-time highs, according to new analysis. Recent data shows billions of dollars heading to exchanges as investors cash in on their BTC holdings.

Short-Term Holders Lock in Profits

While long-term holders continue to hold onto their Bitcoin, short-term holders (STHs) have been busy selling and securing profits. STHs are known for their speculative nature and typically hold their investments for 155 days or less. Their activity has formed a crucial support level for BTC prices this year.

Nearly $5 Billion Transferred to Exchanges

Data from on-chain analytics firm Glassnode reveals that in the four days leading up to December 4th, the total volume transfer between STHs and exchanges reached nearly $5 billion. This surge in profit-taking activity closely mirrors the behavior observed when BTC/USD reached its current record high of $69,000 two years ago.

Bitcoin Bull Market Hurdles

Recent price gains have sparked predictions of a return to all-time highs sooner than expected. Analysts point to a combination of internal and macroeconomic factors that could propel Bitcoin to new heights. However, Fibonacci retracement levels and the Golden Multiplier Ratio metric suggest potential resistance levels in the market.

Please note that this article does not provide investment advice. Readers are advised to conduct their own research before making any investment decisions.