Bitcoin Profit-Taking Surge Pushes Price Below $117K
On-chain data from Glassnode shows a decline in the Long-Term Holder to Short-Term Holder (LTH/STH) supply ratio and a shift from accumulation to distribution over the past 30 days, signalling rising Bitcoin profit-taking. In the latest 24-hour period, this Bitcoin profit-taking saw investors realize $3.5 billion in gains, with long-term holders (holding over 155 days) accounting for $1.96 billion (56%) and short-term holders $1.54 billion (44%). This concentrated profit-taking followed Bitcoin’s rally to a new high above $123,000, triggering a sharp pullback below $117,000, with BTC trading around $116,700 at the time of writing. The surge in realized profit highlights how large-scale distribution can exacerbate market volatility and precede price corrections. Traders should monitor on-chain metrics like the LTH/STH ratio and Realized Profit to anticipate volatility, managing risk through strategies such as dollar-cost averaging, stablecoin diversification and stop-loss orders.
Bearish
The large-scale Bitcoin profit-taking and realized profit surge led to a swift price drop below $117,000, increasing short-term selling pressure. Historically, similar distribution by long-term holders often triggers heightened volatility and near-term corrections, creating a bearish outlook in the short term. Although long-term accumulation signals may re-emerge, the immediate effect is negative as traders adjust positions. As a result, market sentiment turns cautious, with stop-loss orders and risk management strategies prevailing, reinforcing downward pressure.