Bitcoin price recovers from $69K ATH as BTC hodlers take profits
The price of Bitcoin hit a new all-time high of $69,000 on March 5. However, the period above $69,000 was short-lived as the BTC price experienced a blip and briefly fell below $60,000. The price drop was attributed to the high selling of hodlers as many whales and dormant accounts woke up to take profits.
According to data from CryptoQuant, crypto exchanges had an estimated $525 million in BTC revenue for three days, as traders moved BTC from cold storage to exchanges in anticipation of ATH.
One case that surprised the crypto community was a sleeping whale that woke up after 14 years to deposit 1,000 BTC ($67.1 million) into Coinbase when BTC was trading at $67,116. The whale issued this bitcoin in 2010, when the price was less than $0.28, suggesting that the whale made more than $60 million in profits.
While Bitcoin hodlers took profits on their holdings, leveraged traders were less fortunate as leveraged positions of over $1 billion were liquidated due to price volatility, making it the highest liquidation day of the previous cycle.
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As the price of BTC hit $69,000, the Bitcoin Binary Cost Indicator suggests that many Bitcoin hodlers have taken profits. Binary Spend Indicator shows the movement of BTC currencies over the years based on their supply schedule.
Bitcoin has recorded the highest daily volume on Coinbase since the FTX crash, indicating heavy selling.
Despite the recent sales and price crash, not everyone wants to sell. According to CryptoQuant data, 45% of Bitcoin hasn't moved in more than three years, while 11% hasn't been touched in five to seven years.
Crypto analysts have called the recent flash crash healthy for the market by wiping out high volatility and reinstating high liquidity. The funding rate represents the difference between the futures and spot markets. A large amount of cash held by long traders indicates optimism in the market.
Bitcoin price is just 4% away from its all-time high, gaining more than $66,000 in 24 hours.
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