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Home Bitcoin

Bitcoin above $90K – $5.42 billion in profits despite rising sell pressure means…

November 16, 2024
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Bitcoin above $90K – $5.42 billion in profits despite rising sell pressure means…
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  • Bitcoin realized $5.42 billion in profits
  • With rising netflows, BTC faced short-term selling pressure near $90k

Bitcoin (BTC) has seen a realization of $5.42 billion in profits, according to market analyst Ali, as the Sell-side Risk Ratio surged to 0.524%. This metric, which evaluates the risk-reward balance for sellers, remains below historical highs, with the same suggesting that selling pressure is not yet at extreme levels. 

Despite this, however, traders are advised to exercise caution as profit-taking intensifies.

Source: Glassnode

The realized profit figures surged ahead of realized losses, with profits spiking towards $8 billion while losses remained subdued at roughly $1 billion at press time. Such an imbalance is a sign of market optimism, as more investors capitalize on gains rather than selling at a loss.

Bitcoin’s market remains resilient despite recent price drop

Bitcoin was trading above $91,000 at press time, with a 24-hour trading volume of $84.43 billion. While the cryptocurrency did correct on the charts recently, BTC hiked by just under 4% in the last 24 hours. 

At the same time, data from IntoTheBlock revealed that 307,000 addresses accumulated Bitcoin around an average price of $89,200. This level could act as a crucial zone of support or resistance, depending on the market direction. 

Source: IntoTheBlock

Bitcoin’s ability to sustain its price near this level is being closely watched as market participants assess the next move.

Network activity reflects growing adoption

The hike in Bitcoin’s price correlated with a hike in network activity. In fact, data showed an uptick in both new addresses and active addresses – A sign of heightened participation. 

See also  Is Bitcoin at risk from Ethereum ETFs? Peter Schiff explains

New addresses have risen steadily too, reflecting fresh inflows of users into the ecosystem. Active addresses, representing daily transaction participants, also climbed to ~1.1 million, showcasing sustained network engagement.

Source: IntoTheBlock

Meanwhile, the number of zero balance addresses has remained relatively flat, indicating no noticeable increase in dormant or abandoned wallets. 

This trend can be interpreted to suggest sustained trust and engagement from the community, even as Bitcoin’s price fluctuates on the charts. 

Short-term selling pressure?

On 15 November , net inflows of $128.46 million were recorded, suggesting a possible hike in selling pressure. 

Historically, higher inflows to exchanges have been associated with short-term corrections as traders look to capitalize on recent gains.

Source: Coinglass

And yet, Bitcoin’s performance has remained strong, supported by periods of accumulation earlier in the year. Between May and August, consistent negative netflows indicated large-scale withdrawals from exchanges, often linked to institutional investors or long-term holders. 

This accumulation phase likely fueled Bitcoin’s recent rally, which saw the price climb from $25k to over $90k.

Broader economic factors could shape Bitcoin’s future

According to a recent AMBCrypto report, uncertainty surrounding regulatory policies and national debt levels could influence Bitcoin’s price trajectory. 

The new administration may introduce fiscal measures to address debt concerns, which could heighten inflationary risks.

Moreover, with the Bitcoin/Gold ratio peaking at 35, Bitcoin is now valued at 35 times gold’s price, marking a yearly high. This is a sign of Bitcoin’s ongoing outperformance against traditional assets, even amid macroeconomic uncertainty.

Next: Will Hamster Kombat [HMSTR] break $0.01 again despite centralization risks?

READ ALSO

Bitcoin nears $91K as buying pressure soars, but challenges emerge

Spot Bitcoin ETF Options – How U.S exposure is set to soar after CFTC’s notice

  • Bitcoin realized $5.42 billion in profits
  • With rising netflows, BTC faced short-term selling pressure near $90k

Bitcoin (BTC) has seen a realization of $5.42 billion in profits, according to market analyst Ali, as the Sell-side Risk Ratio surged to 0.524%. This metric, which evaluates the risk-reward balance for sellers, remains below historical highs, with the same suggesting that selling pressure is not yet at extreme levels. 

See also  Bitcoin faces bearish divergence: Is a $60K plummet coming?

Despite this, however, traders are advised to exercise caution as profit-taking intensifies.

Source: Glassnode

The realized profit figures surged ahead of realized losses, with profits spiking towards $8 billion while losses remained subdued at roughly $1 billion at press time. Such an imbalance is a sign of market optimism, as more investors capitalize on gains rather than selling at a loss.

Bitcoin’s market remains resilient despite recent price drop

Bitcoin was trading above $91,000 at press time, with a 24-hour trading volume of $84.43 billion. While the cryptocurrency did correct on the charts recently, BTC hiked by just under 4% in the last 24 hours. 

At the same time, data from IntoTheBlock revealed that 307,000 addresses accumulated Bitcoin around an average price of $89,200. This level could act as a crucial zone of support or resistance, depending on the market direction. 

Source: IntoTheBlock

Bitcoin’s ability to sustain its price near this level is being closely watched as market participants assess the next move.

Network activity reflects growing adoption

The hike in Bitcoin’s price correlated with a hike in network activity. In fact, data showed an uptick in both new addresses and active addresses – A sign of heightened participation. 

New addresses have risen steadily too, reflecting fresh inflows of users into the ecosystem. Active addresses, representing daily transaction participants, also climbed to ~1.1 million, showcasing sustained network engagement.

Source: IntoTheBlock

Meanwhile, the number of zero balance addresses has remained relatively flat, indicating no noticeable increase in dormant or abandoned wallets. 

This trend can be interpreted to suggest sustained trust and engagement from the community, even as Bitcoin’s price fluctuates on the charts. 

See also  Trump resorts to Bitcoin Ordinals to boost failed NFT collection

Short-term selling pressure?

On 15 November , net inflows of $128.46 million were recorded, suggesting a possible hike in selling pressure. 

Historically, higher inflows to exchanges have been associated with short-term corrections as traders look to capitalize on recent gains.

Source: Coinglass

And yet, Bitcoin’s performance has remained strong, supported by periods of accumulation earlier in the year. Between May and August, consistent negative netflows indicated large-scale withdrawals from exchanges, often linked to institutional investors or long-term holders. 

This accumulation phase likely fueled Bitcoin’s recent rally, which saw the price climb from $25k to over $90k.

Broader economic factors could shape Bitcoin’s future

According to a recent AMBCrypto report, uncertainty surrounding regulatory policies and national debt levels could influence Bitcoin’s price trajectory. 

The new administration may introduce fiscal measures to address debt concerns, which could heighten inflationary risks.

Moreover, with the Bitcoin/Gold ratio peaking at 35, Bitcoin is now valued at 35 times gold’s price, marking a yearly high. This is a sign of Bitcoin’s ongoing outperformance against traditional assets, even amid macroeconomic uncertainty.

Next: Will Hamster Kombat [HMSTR] break $0.01 again despite centralization risks?
Tags: 90KBillionBitcoinMeanspressureprofitsrisingSell

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