Bitcoin short-term holder sales near $5B as profit-taking mimics 2021

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Bitcoin short-term holder sales near $5B as profit-taking mimics 2021


Bitcoin (BTC) has seen a mass profit-taking event which rivals its $69,000 all-time highs, new analysis reveals.

In a post on Dec. 5, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, flagged billions of dollars heading to exchanges.

Bitcoin speculators sell as if all-time highs are back

BTC price gains have delivered a welcome reward to hodlers across the board in recent days as 19-month highs appear.

While old hands are retaining their share of the BTC supply, at the other end of the spectrum, so-called short-term holders (STHs) have been busy locking in profits on their investments.

STHs refer to entities holding a given part of the supply for 155 days or less. They correspond to the more speculative class of Bitcoin investor, and their cost basis has formed a key BTC price support this year.

Now, with BTC/USD up almost 15% in a week, the time has come to reassess their exposure, data shows.

According to Van Straten, the total volume transfer between STHs and exchanges — coins being prepared for sale — has come close to $5 billion in the four days to Dec. 4.

“Bitcoin recorded a 7% gain, culminating in a year-to-date peak of $38,800 by Dec. 1,” he commented.

“This milestone ignited the most considerable profit realization from short-term holders seen in recent times since November 2021.”

Bitcoin STH transfer volume to exchanges chart. Source: James Van Straten/X

Van Straten referred to figures from on-chain analytics firm Glassnode.

STH profit-taking thus continues to mimic activity from when BTC/USD hit its current record levels of $69,000 two years ago.

Bitcoin bull market hurdles line up

As Cointelegraph continues to report, recent upside has reignited predictions of a return to those levels sooner than the majority thinks is possible thanks to a combination of internal and macroeconomic factors.

Related: Breakout or $40K bull trap? 5 things to know in Bitcoin this week

Analyzing what lies in the way, meanwhile, Philip Swift, creator of statistics resource Look Into Bitcoin, highlighted Fibonacci retracement levels which have featured in previous Bitcoin bull markets.

Swift relayed the Golden Multiplier Ratio metric which he created in 2019 to track price cycle highs.

“These lower fibs have historically acted as resistance in early bull markets. x1.6 (green line) currently at $43,739 and climbing,” he told subscribers on X (formerly Twitter) this week.

Swift added that the higher levels have “successfully identified every Bitcoin cycle high to date.”

Bitcoin Golden Ratio Multiplier chart. Source: Philip Swift/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.