Over the weekend, bitcoin suffered from increasing selling pressure that pushed the price below $70,000 once again. However, as the profitability of short-term holdings remains low at the moment, the risk of the pioneering cryptocurrency suffering further liquidations has been significantly reduced.
Short-term bitcoin holder profitability at 3.35%
crypto analyst Ali Martinez has calmed the nerves of bitcoin investors with new x.com/ali_charts/status/1800058314002419813″ rel=”nofollow” target=”_blank”>data that shows reduced liquidation risk. The chart released in the early hours of Monday shows that the profitability of short-term bitcoin holders has remained low in the new week.
According to Martínez, the low profitability, which currently stands at only 3.35%, means that at this time the risk of liquidation is minimal. This is because short-term investors are likely to wait for higher profit margins before they start selling their holdings to make a profit.
The chart shows that in recent weeks, the profitability of short-term bitcoin holders has fluctuated wildly, as the price of bitcoin has struggled to find its footing. However, looking at performance over a longer period of time, it appears that short-term holders have done quite well.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin Short-term holders are seeing a profit margin of 3.35%, indicating minimal risk of a twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$btc sell! pic.twitter.com/ohl3lXUSl9
—Ali (@ali_charts) twitter.com/ali_charts/status/1800058314002419813?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 10, 2024
Compared to the returns of short-term holders at the beginning of June, these investors are seeing positive gains recently. However, compared to previous selling trends, profitability will have to increase for these short-term investors to start selling again.
Can btc emerge from here?
In a previous analysis of the price of bitcoin, cryptoanalyst Ali Martínez has x.com/ali_charts/status/1799872338835419245″ rel=”nofollow” target=”_blank”>layout where do you expect the btc price to go from here. The analysis showed the movements of the cryptocurrency over the last year with various corrections and peaks.
Based on this data, the crypto analyst believes that the next local high for bitcoin price could be around the $89,200 level. From the current price of around $69,400, this would mark a 28% price increase and a new all-time high for the digital asset.
Furthermore, another x.com/ali_charts/status/1799819239219499290″ rel=”nofollow” target=”_blank”>mail according to the analyst shows that the taker bid-sell ratio on the HTX Global Exchange rose to 730. What this means is that there is a lot of bullish sentiment towards the cryptocurrency and the analyst believes this could fuel the next rally.
For now, bitcoin price continues to struggle amid growing pressure from bears. After reaching $71,000 last week, the price has regained most of its gains. Currently trading at $69,429 at the time of writing, it has seen an increase of 0.45% in the last week. However, it is still the largest cryptocurrency with a market capitalization of $1.368 trillion.
Featured image created with Dall.E, chart from Tradingview.com
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