Bitcoin Investors Are Taking Profits At Highest Rate In 3 Months
Recent on-chain data suggests that Bitcoin’s surge above $27,000 may not last long. According to on-chain analytics firm Santiment, there is a possibility of a short-term correction for the cryptocurrency. The key metric used to determine this is the “ratio of daily on-chain transaction volume in profit to loss.” This metric compares the volume of profit-taking transactions to the volume of loss-taking transactions on the Bitcoin network.
The metric analyzes the transaction history of each coin sold or transferred on the blockchain to determine whether it was sold at a profit or loss. If the previous selling price was lower than the current spot price, it indicates a profit-taking transaction.
The sale of coins at a profit contributes to the profit-taking volume, while coins sold at a loss contribute to the loss-taking volume. The chart below illustrates the trend in this metric over the past few months:
BTC Price
Despite the aggressive profit-taking happening in the market, Bitcoin has managed to hold above the $27,000 mark.
[Insert Bitcoin Price Chart]Hot Take: Is Bitcoin Heading for a Correction?
The surge in Bitcoin’s price above $27,000 may be short-lived due to increased profit-taking by investors. On-chain data reveals a higher ratio of daily on-chain transaction volume in profit compared to loss, indicating that investors are currently taking profits. This suggests a possible short-term correction for Bitcoin. However, despite this aggressive profit-taking, Bitcoin has managed to maintain its value above $27,000 so far. It remains to be seen whether this trend will continue or if a correction is imminent.
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