Bitcoin experienced sell pressure over the weekend, pushing the price below $70,000, but the risk of further sell-offs has decreased due to low short-term holder profitability. According to crypto analyst Ali Martinez, short-term holder profitability is currently at 3.35%, indicating minimal risk of a sell-off as investors are waiting for higher profit margins before selling. Despite fluctuations in profitability in recent weeks, short-term holders have seen positive upside compared to the beginning of June.
Martinez has analyzed Bitcoin’s price movements over the last year and believes the next local top could be around $89,200, representing a 28% increase from the current price of $69,400 and a new all-time high. The Taker Buy Sell Ratio on the HTX Global Exchange rose to 730, indicating bullish sentiment toward the cryptocurrency and potentially driving the next rally. However, Bitcoin continues to struggle amidst bearish pressure, trading at $69,429 with a 0.45% increase in the last week and a market cap of $1.368 trillion.
Overall, Bitcoin investors can take comfort in the reduced risk of sell-offs due to low short-term holder profitability. While short-term holders are currently waiting for higher profit margins before selling, the potential for a significant price increase to a new all-time high presents an opportunity for positive returns. With bullish sentiment driving the market, Bitcoin may see a surge in the near future despite recent struggles.
In conclusion, Bitcoin’s short-term holder profitability sitting at 3.35% indicates a decreased risk of sell-offs and potential for positive returns for investors. The analysis by Ali Martinez suggests a possible new all-time high for Bitcoin around $89,200, driven by bullish sentiment and a potential rally. Despite recent price fluctuations and bearish pressure, Bitcoin remains the largest cryptocurrency with a market cap of $1.368 trillion, presenting opportunities for investors to capitalize on potential price surges in the future.
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