Over the weekend, Bitcoin saw increasing selling pressure that pushed the price below $70,000 again. However, as short-term holding yields currently remain low, the risk of further sell-offs in the pioneering cryptocurrency has decreased significantly.
Compact-term profitability of the Bitcoin holder at 3.35%
Cryptocurrency analyst Ali Martinez calmed the nerves of Bitcoin investors with fresh ones data which indicates a reduced risk of sell-off. The chart published early Monday shows that the profitability of short-term Bitcoin holders remains low in the fresh week.
According to Martinez, the low yield, which is currently just 3.35%, means that the risk of a sell-off is minimal at this point. This is because short-term investors will likely wait for higher profit margins before selling their shares to make a profit.
The chart shows that over the past few weeks, the yield of short-term Bitcoin holders has fluctuated wildly as the Bitcoin price struggled to find its footing. However, looking at longer-term profitability, short-term holders appear to have done quite well.
#Bitcoin short-term holders experience a profit margin of 3.35%, indicating minimal risk a $BTC sell out! pic.twitter.com/ohl3lXUSl9
— Ali (@ali_charts) June 10, 2024
Compared to the profitability of short-term investors at the beginning of June, these investors have recently seen positive improvement. However, compared to previous sales trends, profitability will need to enhance for these short-term investors to start selling again.
Can BTC go up from here?
In a previous analysis of Bitcoin’s price, cryptocurrency analyst Ali Martinez did just that outlined where he expects the BTC price to go from here. The analysis showed the cryptocurrency’s movements over the past year with various corrections and peaks.
Based on this data, the cryptocurrency analyst believes that the next local price peak for Bitcoin could be around $89,200. Compared to its current price of approximately $69,400, this would be a 28% price enhance and a fresh all-time high for this digital asset.
Plus different post by the analyst shows that Taker’s buy and sell ratio on the HTX Global Exchange has increased as high as 730. This means that there is a lot of bullish sentiment towards the cryptocurrency and the analyst believes that this could result in another rally.
For now, the Bitcoin price continues to struggle with growing bearish pressure. After hitting $71,000 last week, the price has since made up most of its gains. Currently trading at $69,429 at the time of writing, it is up 0.45% in the last week. However, it remains the largest cryptocurrency with a market capitalization of $1.368 trillion.
Featured image created with Dall.E, chart from Tradingview.com
