thenewscrypto.com
- Post LUNC-UST collapse, the largest BTC-linked net profit recorded is $320M/day.
- Various technical indicators point out Bitcoin’s market transition to bullish.
Bitcoin’s current consolidation phase has conquered the prime attention of the crypto community. The dominant cryptocurrency laid out a neutral price channel between $26.5K to $28.5K since last week. Remarkably, analytical findings pointed out the increasing investors’ profit-taking and confidence in Bitcoin.
In the above chart, the relative strength index (RSI) of BTC is at 63.24, at press time. The asset is inching closer to its overbought state to send out strong sell signals. At the time of writing, according to CMC, the price of Bitcoin was $27,611.
Bitcoin – Holdings, Exchange Flows & Profits
In recent weeks, the volume of Bitcoin (BTC) transferred to exchanges spiked up. This eventually drove a larger net increase. As per the data from Glassnode, a popular on-chain market intelligence firm, the net exchange inflow increased by nearly 4,180 BTC in Week 13. In total, 31K BTC were sent to the crypto exchanges. Notably, in May 2022, prior to the Terra LUNA (now LUNC) collapse, the cycle recorded the previous high.
The record of exchange flows was not only the milestone for the crypto during this cycle. Significantly, BTC also noted another record in terms of net profit taking this week. As reported, $320 million per day is accounted as the largest net realized profits taken on the deposited BTC.
To highlight, long-term Bitcoin holders earned 80% of the profits while short-term holders earned 65%. The findings also revealed that short-term holders who accumulated BTC near the bottom are the key players in this largest profit-taking.
Keenly another metric category – Lifespan metrics – aided in pointing out the increasing investors’ confidence in Bitcoin by highlighting holders’ dormancy. An increased number of coins remain inactive on-chain suggesting that investors are rooting for long-term HODL.
The consolidated Bitcoin that hinted at a bullish transition exhibits the most nerve-racking episodes in the cryptocurrency market. The community clings to the question – will Bitcoin go back up to $30k by the end of March?
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