Bitcoin has recently reached its new all-time high of approximately $89,915 showing a significant boost of about 24% over the past 7 days. However, in spite of this price hike, profit-taking among investors remains below historical peaks, showing potential for further gains before any significant market corrections happen.
Around $20.4 billion in profits have been realized since entering this all-time high phase. This figure is notably lower than the typical historical range of $30 billion to $50 billion suggesting that many investors are still holding onto their assets, expecting higher prices before selling.
Over 95% of the total amount of Bitcoin in circulation is currently lucrative. Historically, these phases of profit last about 22 days and Bitcoin is now on day 12 of this cycle.
Analysts suggest the current profit-taking activity being below historical averages could show potential for further price surges before reaching a saturation point where demand might exhaust. Around $1.56 billion per day is the average realized profit volume with long-term holders contributing significantly to this sum.
While the recent performance from Bitcoin has been strong, Ethereum has outpaced it with a weekly gain of 27%, underlining a wider market dynamic where altcoins are also gaining traction.
The fact that profit-taking is still below historical peaks, despite the substantial gains made during this most recent surge, indicates that many investors are waiting for possibly higher prices before selling. This sentiment could lead to further upward momentum in the price of Bitcoin if demand continues to be strong.
Not financial advice.
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