BTC31011

07/23 03:34

Bitcoin faces profit-taking, but 4 reasons why BTC

Bitcoin faces profit-taking, but 4 reasons why BTC's rally isn't over yet!

Long-term Bitcoin investors have started taking profits, but the activity appears to be short-lived.

Institutional investors have been the main catalyst for Bitcoin's recent decline, but whale and miner activity remains strongly bullish, providing momentum for a potential rebound.

Bitcoin [BTC] has entered a consolidation phase after breaking through its all-time high of $123,000, an area that is often a stage of accumulation before a major breakout.

Interestingly, profit-taking by long-term holders has reached its highest level this year. However, other market signals suggest that Bitcoin may continue to rise.

According to CryptoQuant, long-term holders (LTH) have started selling Bitcoin to lock in profits in the past 24 hours.

The trend is confirmed by the Spent Output Profit Ratio (SOPR), which has climbed above 2.5, the highest level so far this year.

Despite the surge in realized profits, the SOPR remains below 4.0.  Historically, this threshold has marked local highs for Bitcoin, including in 2021. 

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