Bitcoin (BTC) has witnessed a massive profit-taking event that rivaled its all-time high of $69,000, a new analysis has revealed.
James Van Straten, research and data analyst at cryptocurrency insights firm CryptoSlate, noted in a post on December 5 that billions of dollars are heading to exchanges.
Bitcoin speculators are selling as if it has recovered from all-time highs.
The BTC price rally recently reached a 19-month high, providing welcome rewards to holders across the board.
While veterans have been maintaining their stake in the BTC supply, on the other end of the spectrum, so-called short holders (STHs) have been busy securing a return on their investment.
STH refers to a company holding a specific portion of its supply for 155 days or less. These represent the more speculative class of Bitcoin investors, and their cost base has formed key BTC price supports this year.
Now, with BTC/USD up nearly 15% in one week, the data shows it may be time to reassess your exposure.
According to Van Straten, total trading volume (coins ready for sale) between STH and exchanges approached $5 billion in the four days ending December 4.
“Bitcoin gained 7% to hit a yearly high of $38,800 by December 1,” he said.
“This milestone triggered the largest profit taking from short holders in recent times since November 2021.”
Van Straten cited figures from on-chain analytics firm Glassnode.
STH monetization therefore continues to mimic the activity seen two years ago when BTC/USD reached its current record level of $69,000.
Bitcoin Bull Market Obstacle Lineup
As Cointelegraph continues to report, the recent rally has reignited predictions that a combination of internal and macroeconomic factors will lead to a return to these levels sooner than most think.
Related: Breakout or $40K Bull Trap? 5 things you need to know about Bitcoin this week
Meanwhile, Philip Swift, founder of the statistical data Look Into Bitcoin, analyzed the disruption, highlighting the Fibonacci retracement levels seen in previous Bitcoin bull markets.
Swift passed along the Golden Multiplier Ratio indicator, which it created in 2019 to track price cycle highs.
“These low fibers have historically served as resistance in early bull markets. x1.6 (green line) is currently at $43,739 and rising,” he said. said Subscribers to X (formerly Twitter) this week.
Swift added that the higher level “has successfully identified all Bitcoin cycle highs to date.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.