Bitcoin’s Short-Term Holders See Profit Dominance Amid Market Rebound

As a seasoned analyst with over two decades of experience in financial markets, I must admit that the recent surge in Bitcoin’s price has been quite intriguing. Having witnessed numerous bull and bear cycles across various asset classes, I find myself in awe of the unparalleled volatility and resilience of cryptocurrencies like BTC.


Due to a recent surge in the market, Bitcoin‘s price has climbed back up to the significant $65,000 mark. As a result, traders and investors who have invested in this digital currency are currently enjoying substantial returns on their investments, particularly those who have held Bitcoin for a short period.

Short-Term Bitcoin Holders In The Green

According to a recent report from Glassnode, the world’s top on-chain and data platform, there’s been a substantial growth in the profit control held by short-term Bitcoin owners. This increase in profit control can be attributed to recent upward trends in BTC prices and the broader market.

Following several turbulent and stable periods, Bitcoin’s worth has significantly rebounded, benefiting a larger number of temporary traders. With prices ascending, short-term speculators are capitalizing on this trend, contributing to the ongoing surge in the value of this digital currency.

As per Glassnode’s analysis, short-term Bitcoin holders are currently leading in profitability, as their Profit/Loss Ratio stands at 1.2. This finding was emphasized by Glassnode, who pointed out that this metric has just surpassed a one standard deviation above its 90-day average, potentially indicating an uptick in investor optimism.

With Bitcoin’s consistent growth, experts predict that this trend could influence upcoming price fluctuations and potentially shape the overall trajectory of the market.

Bitcoin’s Short-Term Holders See Profit Dominance Amid Market Rebound

In simpler terms, the sudden increase in prices is making quick traders rich, but Glassnode warns that there could be market turbulence in the future. This forecast is based on a decrease in the number of active trades (Open Interest), which suggests that traders are closing their positions due to high price fluctuations. This action can cause apprehension and uncertainty among investors.

Over the past weekend’s surge, I observed that roughly $2.5 billion in futures contracts were liquidated, signaling a massive exit by short sellers. Yet, the decrease in open interest on the top three perpetual exchanges didn’t reach the 5% threshold, leaving the market exposed to potential volatility and potential squeezes for leveraged traders.

BTC’s Price Maintains Recent Pace

Bitcoin’s value has been buoyed by investors’ renewed confidence, as it surged back up to around $65,000 following a significant increase on Monday. The digital currency has maintained its strength in the market since then.

Yesterday, Bitcoin experienced a nearly 3% growth, currently valued at approximately $65,660. On a wider scale, such as the weekly and monthly perspectives, this digital currency has surged more than 5% and 9% respectively.

Given Bitcoin’s recent surge in power, various experts predict that this might just be the start of an even larger upswing, potentially reaching fresh record highs within the near future or by the end of the year.

Based on Captain Faibik’s analysis as a crypto specialist, Bitcoin’s performance thus far has been positive. It has shaped a wedge formation and is approaching the significant resistance level of $68,000 once more. If Bitcoin manages to break free from this wedge pattern, Faibik is optimistic that prices could surge towards $88,000 and potentially even reach $90,000 in November.

Bitcoin’s Short-Term Holders See Profit Dominance Amid Market Rebound

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2024-10-15 23:11