Bitcoin Price Faces Key Resistance at $70,000 as Short-Term Profitability Stands at 3.35%

  • Over the recent weekend, Bitcoin faced a significant decline, pushing its price below the $70,000 mark.
  • Despite this drop, the current low profitability for short-term holders suggests a reduced risk of further sell-offs.
  • An analyst, Ali Martinez, shared data indicating that Bitcoin’s short-term holder profitability has remained notably low, calming investor concerns.

Bitcoin’s short-term holder profitability remains low, reducing the risk of imminent sell-offs.

Bitcoin Short-Term Holder Profitability Remains Low

According to crypto analyst Ali Martinez, Bitcoin investors can remain calm as new data shows a reduced risk of significant sell-offs. Early Monday, a chart revealed Bitcoin’s short-term holder profitability at a mere 3.35%, which remains low going into the new week.

Martinez shared that this low profitability level indicates a minimal risk of widespread selling. Short-term investors, under these conditions, are likely to wait for better opportunities to sell at higher profit margins.

Recent trends show that short-term holder profitability has seen significant fluctuations, reflecting Bitcoin’s unstable price environment. However, in a broader context, short-term holders have still managed to maintain a favorable position over time.

#Bitcoin short-term holders are seeing a profit margin of 3.35%, indicating a minimal risk of a $BTC sell-off! pic.twitter.com/ohl3lXUSl9

— Ali (@ali_charts) June 10, 2024

As compared to the start of June, short-term holders are currently witnessing positive upside movements. Nonetheless, for a new sell-off wave to begin, the profitability would need to show a significant rise.

Potential for a Bitcoin Rally

In another analysis, Ali Martinez examined Bitcoin’s price trajectory and presented potential future scenarios. By reviewing Bitcoin’s movements over the past year, including various corrections and peaks, Martinez suggested possible price directions.

The analysis suggests that Bitcoin could reach a local top at approximately $89,200. This would represent a roughly 28% increase from its current price, marking a new all-time high for the cryptocurrency.

Martinez also highlighted the Taker Buy Sell Ratio on the HTX Global Exchange, which reached as high as 730. This metric indicates strong bullish sentiment, which could be a catalyst for Bitcoin’s next price rally.

Despite facing substantial bearish pressure, Bitcoin continues to show resilience. Last week, it briefly reached $71,000 before experiencing a pullback. Currently trading at $69,429, it still leads the market with a capitalization of $1.368 trillion.

Conclusion

In summary, while Bitcoin faced mounting sell pressure over the weekend, the low profitability for short-term holders suggests a reduced risk of further sell-offs. Analytical insights indicate a potential price surge up to $89,200, driven by bullish sentiment in the market. Investors should remain cautious but optimistic as Bitcoin navigates its current market dynamics.

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Jocelyn Blake
Jocelyn Blakehttps://en.coinotag.com/
Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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