In the wake of the market crash on October 10, where the price of Bitcoin reached levels as low as $101,500, the market is showing a distinct bearish on-chain structure. While the selling momentum appears to be slowing, offering a glimmer of hope to potential market participants, the latest on-chain analysis seems to point to caution as the healthier sentiment in the short term.
Realized profits amount to $2.25 billion
In an October 11 post on social media platform X, technical analyst and chain connection Darkfost said open That a lot of Bitcoin investors may still be taking profits from their recent purchases.
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In the post on X, Darkfost cited results obtained from the 7-day Net Realized Profit/Loss (USD) indicator. This metric monitors the average daily difference between the total amount of realized profits and transaction losses over the past seven days.
For context, realized profits refer to the total US dollar amount of Bitcoin sold at prices above buying levels, indicating that investors are selling in the green. On the other hand, realized losses reflect the total dollar value of Bitcoin sold at less than the purchase cost.
The analyst explained that the 7-day moving average of the net realized profit/loss measure recently reached a peak of $2.25 billion, the fourth highest level seen in the current market cycle. Meanwhile, the weekly average of the gauge remains well above $1.6 billion, indicating that profit taking remains at a high level.
Darkvost noted that if the Bitcoin market continues to see this amount of profit taking, it may take some time before the major cryptocurrency shifts from its current bearish sentiment to a more optimistic one.
The next support price could be $99,000 – $104,000
In another post on
According to the analyst Share on XThis price range has a fair amount of spot quotes within it, enough to act as a support area to keep the Bitcoin price afloat.
The next market path thus appears to depend on whether profit taking by investors remains high. In a scenario where this happens, the $99,000 to $104,000 price range may be the next area to pay attention to.
In the bullish scenario, Bellows explained that the $119,000 price level and other areas above hold most of the sell orders currently in the market.
As of this writing, Bitcoin is worth around $111,772, reflecting gains of more than 1% over the past 24 hours.
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Featured image from iStock, chart from TradingView
The post Bitcoin Profit-Taking Hits $2.25 Billion Following Market Crash — What Could This Mean? first appeared on Investorempires.com.
