Bitcoin Holders Lock In 16% Gains Amid Golden Cross

Bitcoin holders have accelerated their profit-taking activities following the cryptocurrency's price averages confirming a golden cross two weeks ago. This technical indicator, which signals bullish long-term momentum, was observed when Bitcoin's 50-day simple moving average (SMA) crossed above its 200-day SMA on May 22. On the same day, Bitcoin's price reached a record high above $111,000.

Despite the bullish signal, on-chain data from Glassnode indicates that holders are increasingly locking in gains rather than holding for further price increases. The entity-adjusted realized profit, which represents the total USD profit of all coins moved on-chain where the price at their last movement is lower than the latest transaction price, spiked above $500 million per hour three times in the past 24 hours. This surge in profit-taking activity is the most intense since early February.

Other metrics, such as the entity-adjusted spent output profit ratio (SOPR), also suggest a significant increase in profit-taking. The SOPR tracks the profit level of all moved coins during a given period, and its entity-adjusted version provides a reliable indicator of real economic activity by discarding transactions between addresses of the same entity. According to Glassnode's weekly report, the recent all-time high (ATH) breakout has led to a notable uptick in profits locked in, with the average coin capturing a +16% profit. Fewer than 8% of trading days have been more profitable for investors, indicating a meaningful transition into profit-taking activity.

However, the report also notes that the current profit-taking activity is still not as intense as seen during prior major price-topping patterns. As of the latest update, Bitcoin was trading at $105,600. This activity comes amid reports of significant developments in the cryptocurrency market, including potential new investment opportunities for everyday investors.