Bitcoin Long-Term Holders Cash Out $1.96 Billion In Profits

Long-term Bitcoin holders have made a surprising move by cashing out a substantial $1.96 billion in profits over the past 24 hours. This event marks one of the largest single-day profit realizations of the year, with long-term holders accounting for 56% of the total realized profits. This is a significant shift from their typical behavior, as these investors are known for holding through market volatility. The remaining $1.54 billion in profits was taken by short-term holders, indicating a broader trend of risk reduction as Bitcoin prices hovered near cycle highs.

This profit-taking occurred as Bitcoin briefly touched $123,000 earlier in the week before retreating to around $117,000. The latest trading charts suggest that Bitcoin is encountering resistance near its local top, with the daily Relative Strength Index (RSI) showing signs of cooling down. The price action over the past few hours also indicates exhaustion, with Bitcoin dropping by more than $5,000 from its weekly high.

The recent surge in Bitcoin's price has not only been influenced by ETF flows and macro sentiment but has also impacted the real economic decisions of long-term investors. The sudden outflow of $3.5 billion in profits within a single day raises questions about whether Bitcoin can withstand the supply shock or if further selling is imminent. The next few trading sessions will be crucial in determining the market's response to this significant profit-taking event.

This move by long-term holders suggests a more calculated and cautious approach at this stage of the cycle. It highlights how current price levels are prompting real-world financial decisions, not just short-term hype but a broader strategic pivot by seasoned participants. The market is now closely observing indications of support as the robust purchase demand has tapered off.

Despite the recent drop, Bitcoin remains technically sound on the chart, trading above the 50-day and 200-day moving averages. However, the influx of profits in the market has produced immediate turbulence and decreased the upward thrust. The market is now in a state of uncertainty, with short-term sentiment starting to sag on cycle highs.