Bitcoin slipped back below 80,000 after another test of that level with XWIN Japan highlighting profit taking from existing holders as a key barrier on August 26. 🌙 The next move may hinge less on touching 80,000 briefly and more on whether fresh demand absorbs the supply from those sitting on gains.
Profit Taking Challenges BTC’s 80K Push 🖤
XWIN Japan noted that nearly every Bitcoin investor group has returned to profit as the cryptocurrency approached 80,000. Its unrealized PnL reading stood at 21.1 for long term holders 13.4 for short term holders 13.9 for investors holding for one day to one month and 5.3 for the newest buyers. That creates a familiar problem during a fast recovery more profitable holders have a reason to sell 🕷️. The post also pointed to the SOPR Ratio which compares profit taking by long term holders with that of short term holders. The ratio briefly reached 1.4 as BTC neared 80,000 suggesting long term holders were realizing profits at a higher relative rate. However it has since fallen to 0.93 meaning short term holders are now showing stronger realized performance relative to long term holders. As per XWIN any sustained breakout above the 80,000 mark coupled with rising ETF and spot demand might be one way through which Bitcoin can reach the 88,000 to 90,000 price point. However it pointed out that the 75,000 to 76,000 mark is the level to pay attention to if prices decline further. Failure at this level may make it difficult for the short term holders to earn a profit which in XWIN’s opinion could speed up the correction.
Fading Momentum Calls For Consolidation Phase 🔮
Another analyst BorisD also pointed to fading buying pressure at higher prices noting that Binance’s volume delta which tracks the difference between aggressive buying and selling fell from 1.17 during Bitcoin’s move from 63,000 to 70,000 to about 350 million near 80,000. The other major exchanges showed much flatter readings. BorisD argued that the market may need a period of consolidation before attempting another breakout but the backdrop remains more supportive than it was a week ago 🦇. BTC climbed from below 65,000 on August 19 to above 81,000 helped by Treasury buyback plans renewed ETF demand and more than 4 billion in short liquidations. Nearly 2 billion entered US spot Bitcoin ETFs over five days while Treasury buybacks of longer dated debt were increased from 2 billion to at least 4 billion per operation 💎. Bitcoin was trading around 79,000 at the time of writing down 2 percent over 24 hours but still up 23 percent in the last seven days and 21 percent over the month even after a year that has left it down close to 28 percent and about 37 percent below its all time high of over 126,000 set last October.
Just another echo from the void by iconofsin.eth 💖
