Bitcoin Realized Profit Surges as Short-Term Holders Increase Selling, Potential Pressure Below $104K

  • Bitcoin’s realized profit surged by $1.5 billion on June 3rd, driven by aggressive selling from short-term holders amid a recent price rally.

  • This profit-taking activity signals increased selling pressure that could challenge Bitcoin’s key support levels in the near term.

  • According to Glassnode, the Entity-Adjusted Realized Profit spiked sharply, marking one of the most significant waves of profit-taking since the rally began.

Bitcoin’s realized profit hits $1.5B as short-term holders sell aggressively, raising concerns over potential price dips below $104K amid rising profit-taking.

Bitcoin Realized Profit Hits $1.5 Billion Amid Intense Selling Pressure

On June 3rd, Bitcoin experienced a substantial increase in realized profit, reaching $1.5 billion within a single day. This surge was primarily driven by aggressive selling during a brief rally that pushed BTC prices to $106.8K before retracing to $105.2K. The rapid profit-taking reflects a market environment where investors are locking in gains amid heightened volatility.

Bitcoin Entity-Adjusted Realized Profit Chart

Source: Glassnode

Data from Glassnode reveals that Bitcoin recorded three separate hourly spikes of $500 million each in realized profit on June 3rd, underscoring a wave of profit-taking rarely seen in recent months. The average coin realized a +16% gain, indicating that sellers were predominantly in profitable positions. This trend suggests that investors are capitalizing on recent price gains to secure returns, potentially signaling a shift in market sentiment.

Short-Term Holders Drive the Selling Momentum

Analysis from CryptoQuant highlights that short-term holders (STHs) are the primary contributors to the current selling pressure. The STHs’ Spent Output Profit Ratio (SOPR) surged from 0.99 to 1.04, indicating that many short-term investors are realizing profits as Bitcoin surpassed $106K.

Bitcoin Short-Term Holder SOPR Chart

Source: CryptoQuant

Furthermore, Bitcoin’s Net Unrealized Profit (NUP) has been declining, reflecting a narrowing gap between the current market price and the average cost basis for short-term holders. This contraction implies that many recent buyers are either breaking even or facing losses, prompting them to exit positions to preserve capital or realize modest gains.

Bitcoin Net Unrealized Profit Chart

Source: CryptoQuant

Potential Impact on Bitcoin Price: Will $104K Support Hold?

The intensified profit-taking raises concerns about Bitcoin’s near-term price stability. Sustained selling pressure, especially from short-term holders, could exert downward momentum on BTC, potentially breaching the critical support level at $104K.

If the current trend continues, technical analysis suggests Bitcoin may test lower support around $102,683. This scenario aligns with a dip in the stock-to-flow ratio, which historically correlates with bearish price action during periods of elevated selling.

Market participants should monitor realized profit metrics and short-term holder activity closely, as these indicators provide valuable insights into potential shifts in market dynamics.

Conclusion

Bitcoin’s recent $1.5 billion surge in realized profit highlights a significant wave of profit-taking, predominantly driven by short-term holders capitalizing on recent price gains. While this reflects healthy market activity, the increased selling pressure poses risks to Bitcoin’s near-term support levels, particularly the $104K threshold. Investors should remain vigilant as continued profit-taking could lead to further price corrections, emphasizing the importance of monitoring on-chain metrics to navigate this evolving landscape effectively.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Binance Executive Tigran Gambaryan Resigns Following Detention in Nigeria and Compliance Challenges

Binance executive Tigran Gambaryan, known for leading a global...

June 6th Bitcoin Options Expiry Signals Moderate Long-Term Uptrend Amid Market Volatility

COINOTAG News reported on June 6th that significant options...

Whale Executes Massive AAVE Buy and Re-Deposits $69.66M Worth of Tokens on Aave Protocol

COINOTAG News reports that on June 6th, a significant...

Coinbase to List Fartcoin, Token Jumps 12%

Coinbase to List Fartcoin, Token Jumps 12%

Whale 0xcB9 Secures $5.18M Profit by Timing ETH Short Before Price Drop

According to LookIntoChain analytics reported by COINOTAG News on...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img