Bitcoin Faces Potential Downturn As Profits Are Taken, Glassnode Data Shows
Portfolio Pulse from Murtuza Merchant
Bitcoin (BTC) is experiencing potential volatility and price correction, according to Glassnode. After reaching a high of $68,000, it's now at $66,550. Glassnode's analysis indicates a phase of profit-taking, with a significant decline in supply held by long-term holders and realized profits hitting a new all-time high of $3.5 billion per day. This trend requires $3.5 billion in capital inflows to maintain price levels. The Bitcoin AVIV ratio suggests the market is entering a more volatile phase, with potential for sharp corrections.
March 21, 2024 | 6:57 pm
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Bitcoin faces potential volatility and price correction due to increased profit-taking and the need for significant capital inflows, as analyzed by Glassnode.
The analysis by Glassnode indicates a phase of increased profit-taking among long-term holders, with realized profits reaching new highs. This trend, coupled with the need for substantial capital inflows to absorb the coins being sold, suggests a potential downturn in Bitcoin's price in the short term. The mention of the Bitcoin AVIV ratio further supports the expectation of increased market volatility.
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