Bitcoin Profit Taking Relatively Muted Amid $93K Rally – Can BTC Climb Higher?

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous bull and bear cycles throughout my career. The current Bitcoin (BTC) rally to a new all-time high (ATH) of $93,477 is undoubtedly one of the most intriguing price movements I’ve ever encountered.

Bitcoin (BTC) just hit a brand new record high of $93,477, moving ever closer to the eagerly awaited $100,000 mark. During this price surge, there’s been less selling compared to usual, leading many to believe that Bitcoin still has potential for significant growth.

Low Profit-Taking For Bitcoin In Current Cycle

As per a recent analysis by Glassnode, the primary force behind Bitcoin’s current price surge seems to be robust retail demand and an increase in institutional investment. Interestingly, the election victory of Republican U.S. Presidential candidate Donald Trump has brought a wave of optimism to the digital asset sector.

In simpler terms, the analysis shows that more than nine out of ten Bitcoins are being held at a profit right now. Yet, even with so many profitable owners, there hasn’t been much selling or cashing in compared to previous cycles.

Historically, the monthly realization of profits from Bitcoin’s all-time high (ATH) cycles has usually been between 30 and 50 billion dollars. During the current phase of price discovery, around 20.4 billion dollars worth of profit has been realized.

In this Bitcoin all-time high (ATH) cycle, the comparatively modest level of profit-taking indicates there’s still significant potential for the BTC price increase, possibly surpassing the $100,000 mark before interest in buying diminishes.

The graph displays the initial investment costs for new Bitcoin investors, alongside upper and lower statistical limits. As per the report, when Bitcoin reaches all-time highs, its price often touches or exceeds the upper boundaries as more investors join the market, purchasing at higher prices.

From what I’ve observed in the chart, the current BTC price sitting at $91,199 is slightly below its upper band at $94,900. Monitoring the fluctuations between these levels can help identify potential instances where the market price could reach a peak, possibly compelling existing investors to offload their holdings.

Excess Leverage Must Be Flushed Before $100,000 BTC

When Bitcoin’s price hovers within 10% of the $100,000 threshold, some industry analysts suggest that high levels of borrowing need to be reduced first, before Bitcoin aims for its goal of reaching six figures.

As a researcher examining data from Coinglass, I’ve found that a staggering amount of over $718 million in cryptocurrency contracts have been liquidated within the last 24 hours. This significant event affected approximately 202,074 traders.

It’s worth noting that long and short contract liquidations were quite balanced – 49.93% for longs versus 50.07% for shorts. This suggests that while there was a strong positive market outlook, it didn’t offer a definitive edge in trading terms.

Certain key figures within the sector continue to express confidence in Bitcoin’s potential price movements. Recently, the head of Bitcoin mining company CleanSpark predicted that the top cryptocurrency could reach approximately $200,000 over the next 18 months.

In a similar fashion, Arthur Hayes, one of the co-founders of BitMEX, has foreseen that Bitcoin (BTC) could potentially reach $1 million while the Trump administration is still in power. As we speak, BTC is trading at approximately $91,199, showing an increase of 3.9% over the last 24 hours.

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2024-11-15 06:04