Estimates say Binance will send $500M and Bitcoin profit taking is approaching $74K.
Bitcoin speculators are starting to take massive profits as BTC price gains take the market to three-month highs.
Data from the Onchain Analytics Platform shows Glassnode Bitcoin (BTC) short-term holders (STHs) cashing in on a price rally above $65,000.
Bitcoin short-term holders eye profit protection
Bitcoin investors who are relatively new to the market – those who hold a certain amount of BTC for 155 days or less – are packing profits at current levels.
According to Glassnode, on October 14, the amount of BTC sent by STH wallets to the largest international exchange, Binance, was the largest since BTC/USD set a high of $73,800 in March.
In total, Binance received 7,127 BTC (about $480 million) of STH.
Transfer Bitcoin STH amount to Binance. Source: Glassnode
Taking into account the major exchanges tracked by Glassnode, this week's daily highs are among the highest since early June.
Bitcoin STH amount to all exchanges. Source: Glassnode
Analyzing STHs financials, the firm has highlighted healthy profit margins that now give it a sense of success after months of sideways price performance.
“Short-term holders are currently showing a profit margin with a 1.2 profit/loss trade,” he said in a post on X.
“This measure recently broke 1 standard deviation above its 90-day moving average, indicating a possible positive shift in investor sentiment.”
Bitcoin STH profit / loss ratio data. Source: Glassnode/X
BTC price study sees “high volatility”.
As Cointelegraph reports, Bitcoin investor sentiment has been volatile this month. Relatively modest volatility has resulted in dramatic changes in market exposure.
Related: Different this time? Bitcoin RSI Says $233K BTC Price Possible By 2025
Meanwhile, the largest Bitcoin whale has collected 1.5 million BTC in recent months.
Next, while Glassnode has seen a decline in demand for BTC since its March highs, so has supply.
“The significant gap between supply and demand forces continues to widen,” he concluded in the latest edition of his weekly newsletter, released on October 15.
The demand side of the market has declined significantly since the March ATH, with several measures of ‘active supply' continuing to tighten and tighten. In terms of historical precedence, past examples of acute tightening on the part of Bitcoin's supply have been a precursor to a regime of high volatility.
Bitcoin STH Relative Unconfirmed 14-Day Moving Average Loss (Snapshot). Source: Glassnode
Among the attached charts is proof of STHs low unrealized losses.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
