Since November 21, Bitcoin (BTC) has been hovering around the $100,000 mark but has yet to reach it, with TinTucBitcoin attributing the increase to recorded profits.
Recent data suggests profit-taking has slowed. What does this mean for the price of Bitcoin?
Bitcoin investors temporarily stop taking profits
Data from Glassnode shows that Bitcoin profits reached $10.58 million on Thursday, November 21. However, at the time of writing, this figure has dropped to $1.58 million, a difference 9 million USD.
As the name indicates, realized profit is the value of the coins sold after their price has increased. Therefore, when this index increases, it is difficult for Cryptocurrency prices to maintain their upward momentum.
However, when recorded profits decreased, most BTC Holders stopped selling in large volumes. If this trend continues, Bitcoin price could recover and potentially reach the $100,000 mark.
This sentiment is further reinforced by the Coin Holding Time index, which tracks how long a Cryptocurrency has been held without being traded or sold.
When the Coin Holding Time index decreases, it means that Holders of a particular Cryptocurrency are selling. If this continues, the trend will become less positive. However, over the past seven days, the BTC Coin Holding Time index has increased by 65%.
This increase reinforces the bias as Bitcoin profits have noted that selling pressure has decreased. More interestingly, IT Tech, an analyst on CryptoQuant, agrees with the view that Bitcoin can continue to grow.
“The green bar shows that profitable selling of STH has not reached levels seen during the previous peak of $72,400. This suggests that profit-taking pressure has not yet peaked, and there is still room for prices to increase further,” IT Tech speak.
BTC price prediction: $102,500 seems close
On the daily chart, BTC continues to trade within an ascending channel, suggesting it is likely to climb higher.
TinTucBitcoin also observed that the Supetrend index still maintains a bullish signal. Supertrend is a technical indicator used to determine the price direction of an asset.
If the red part of the indicator is above the price, the trend is down, and the price may fall. However, since the blue area is below the price, the value could surpass $99,780. If this happens, Bitcoin price could rise to $102,500.
On the other hand, if Bitcoin’s recorded profits surge again, this may not happen. Instead, the price could drop to $84,466.