Bitcoin Rally Hits Resistance
After a strong surge, Bitcoin has encountered resistance and experienced a significant decline. It reached a new yearly peak of $44.5k before facing the third largest sell-off of 2023.
Short-Term Holders Take Profits
On-chain data suggests that short-term holders (STH) are responsible for pausing the climb. These holders have taken advantage of the strong price appreciation by selling their coins.
STH Profit-Taking Activity
Glassnode’s analysis reveals that the recent rally prompted a significant amount of profit-taking by short-term holders. This indicates a potential saturation of demand and exhaustion in the market.
Bitcoin Supply on Exchanges Declines
In contrast to short-term holders, long-term Bitcoin holders have remained unaffected by the rally. The supply of BTC on centralized exchanges has reached its lowest level in six years, reflecting a growing preference among investors to hold onto their assets.
Hot Take: Bitcoin Faces Resistance from Short-Term Holders
The recent rally in Bitcoin faced resistance as short-term holders capitalized on soaring prices and took profits. This profit-taking activity, combined with a decline in BTC supply on exchanges, suggests a potential saturation of demand and exhaustion in the market. While long-term holders remain unfazed, the actions of short-term holders have influenced the recent price movement of Bitcoin. It will be interesting to see how this dynamic evolves and whether Bitcoin can overcome this hurdle in its ongoing uptrend.
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