Bitcoin Profit-Taking: $1.5B Sell-Off Sparks Correction Concerns
Bitcoin (BTC) experienced a significant price correction after a three-day surge to $106,800, retracing to $105,200. This suggests considerable profit-taking pressure within the market.
Massive Profit-Taking: $1.5 Billion in a Single Day
Data from Glassnode reveals a dramatic spike in Entity-Adjusted Realized Profit on June 3rd. Bitcoin saw three separate hourly surges exceeding $500 million each, totaling $1.5 billion in realized profit. This represents one of the most aggressive profit-taking waves since the recent rally began, with the average coin realizing a +16% profit.
The chart below from Glassnode illustrates this significant surge in realized profits:
This indicates a considerable number of holders are securing profits after the recent price increases.
Short-Term Holders Leading the Sell-Off
Analysis from CryptoQuant shows that short-term holders (STHs) are primarily driving the sell-off. Their Spent Output Profit Ratio (SOPR) increased from 0.99 to 1.04, indicating a significant portion of realized profits originated from this group. Many STHs appear to have closed positions once BTC surpassed $106,000.
The following charts from CryptoQuant highlight the activity of short-term holders:
The decline in Bitcoin's Net Unrealized Profit (NUP) further supports this trend. As the price pulled back, the profit margin for STHs narrowed, prompting many to sell to secure gains or avoid potential losses.
Potential for Further Correction?
The intense profit-taking raises concerns about a potential deeper correction. Continued selling pressure from STHs could drive the price below the crucial support level of $104,000, potentially leading to a decline towards $102,683.
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