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Bitcoin profit-taking drops by $7B signaling rally potential

Bitcoin profit-taking drops by $7B signaling rally potential

GrafaGrafa2024/12/19 05:50
By:Liezl Gambe

Bitcoin's (CRYPTO:BTC) price fell below $105,000 after reaching an all-time high of $108,365 on December 17, 2024, prior to the U.S. Federal Reserve's interest rate announcement on December 18.

Although short-term volatility persisted, a crypto analyst pointed out that Bitcoin’s long-term holders (LTH) are positioning themselves for potential future gains.

Bitcoin experienced a 37% return in November 2024, peaking with a new all-time high, followed by significant profit-taking activity.

The selling pressure in November reached 366,000 BTC, estimated to total $10 billion.

However, Bitcoin analyst Percival, a verified figure on CryptoQuant, observed that the extent of profit-taking has significantly reduced in the past three weeks.

The amount of profit realised by long-term holders dropped from $10 billion on November 25 to $3 billion on December 14, despite a 12% price rally during this period.

"This means that LTH has realised most of its profits at this stage and is ready to see further increases," Percival noted.

Additionally, Percival used a 90-day market versus realised price gradient oscillator chart, revealing a neutral position between buyers and sellers.

This equilibrium zone of 0.5 signals a balanced market, indicating potential for an upward price phase since Bitcoin is neither overbought nor oversold.

Despite this positive outlook, some caution is advised.

Analyst Yonsei Dent noted that the Coinbase premium has been declining since early December, suggesting that the recent BTC rally lacked strong demand from U.S. investors.

This trend could indicate underlying weakness in Bitcoin's medium-term upward momentum.

Independent crypto trader Daan Crypto, however, predicted Bitcoin would follow a similar price trajectory as last year, expecting further price fluctuations before a breakout in Q1 2025.

At the time of reporting, the price of Bitcoin (BTC) was $101,246.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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