Over the weekend, Bitcoin suffered from mounting sell pressure that pushed the price below $70,000 once again. However, with the short-term hold profitability remaining low at this time, the risk of the pioneer cryptocurrency suffering further sell-offs has dropped significantly.
Bitcoin Short-Term Holder Profitability At 3.35%
Crypto analyst Ali Martinez has soothed Bitcoin investors’ nerves with new data that shows a reduced risk of sell-off. The chart which was posted in the early hours of Monday shows that Bitcoin short-term holder profitability has remained low going into the new week.
According to Martinez, the low profitability, which is currently sitting at just 3.35%, means that there is a minimal risk of sell-off at this time. This is because short-term investors are likely to wait for higher profit margins before they start selling off their holdings for profit.
The chart shows that in the last few weeks, the Bitcoin short-term holder profitability has fluctuated wildly, as the Bitcoin price has struggled to find its footing. However, looking at the profitability over a longer period of time, and it seems that short-term holders have done quite well for themselves.
#Bitcoin short-term holders are seeing a profit margin of 3.35%, indicating a minimal risk of a $BTC sell-off! pic.twitter.com/ohl3lXUSl9
— Ali (@ali_charts) June 10, 2024
Compared to where the short-term holder profitability was at the start of the month of June, these investors are seeing positive upside as of recently. However, compared to previous sell trends, the profitability will have to increase for these short-term investors to begin selling once again.
Can BTC Surge From Here?
In a previous analysis of the Bitcoin price, crypto analyst Ali Martinez has mapped out where he expects the BTC price to go from here. The analysis showed the cryptocurrency’s movements over the last year with various corrections and peaks.
Going by this data, the crypto analyst believes that the next local top for the Bitcoin price could lie around the $89,200 level. From the current price of around $69,400, this would be a 28% increase in price, and a new all-time high for the digital asset.
Additionally, another post by the analyst shows that the Taker Buy Sell Ratio on the HTX Global Exchange rose as high as 730. What this means is that there is a lot of bullish sentiment toward the cryptocurrency and the analyst believes that this could drive the next rally.
For now, the Bitcoin price continues to struggle amid mounting pressure from bears. After reaching $71,000 last week, the price has since retraced most of its gains. Currently trading at $69,429 at the time of writing, it has seen a 0.45% increase in the last week. However, it remains the largest cryptocurrency with a market cap of $1.368 trillion.
Featured image created with Dall.E, chart from Tradingview.com
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