Fun

Bitcoin Trader Unrealized Profit Margins At High Levels – Risk Of Correction?

News Feed - 2024-11-15 01:11:55

Este artículo también está disponible en español.


Bitcoin set a new all-time high yesterday, reaching $93,483, continuing its impressive rally without significant setbacks. Over the past nine days, the crypto leader has surged with minimal dips, not falling more than 5% during this bullish phase. This relentless price action has drawn widespread attention as Bitcoin defies expectations and resists any notable pullback. Related Reading Chainlink Whales Waking Up – Data Shows Signs Of Accumulation 23 hours ago


Key data from CryptoQuant reveals that traders’ unrealized profit margins are climbing, indicating that the market may be nearing a short-term peak. High unrealized profit levels typically signal that a correction could be on the horizon as investors look to secure gains. However, given the current strength of Bitcoin’s price action, the timing and scale of any correction remain uncertain.


With Bitcoin’s price momentum showing few signs of slowing down, the coming days will be crucial in determining whether the market can sustain these levels or if a healthy retrace is in store. Investors are closely watching for potential entry points and key support levels, knowing that even minor dips could trigger strong buying interest as Bitcoin’s bullish phase persists. Bitcoin Strong Move About To Pause?


Bitcoin’s price action has been remarkable, surging 38% since the U.S. election and capturing widespread attention with its unrelenting bullish momentum. However, this aggressive rally may be approaching a temporary pause, as data hints at a potential correction. 


CryptoQuant’s head of research, Julio Moreno, recently shared a compelling chart highlighting Bitcoin traders’ unrealized profit margins, which have reached 47% — a level that has often preceded price pullbacks. Bitcoin Trader Realized Price and Profit/Loss Margin at 47% | Source: Julio Moreno on X


High unrealized profit margins can indicate that traders are sitting on significant gains, raising the likelihood of profit-taking that could trigger a market cooldown. Moreno’s analysis notes that this metric tends to correlate with a heightened risk of a correction when it surpasses certain thresholds. For instance, prior peaks in March reached 69%, while December 2023 saw unrealized profits hit 48%, both instances that led to notable corrections shortly after.


Still, the current 47% level suggests that, while caution may be warranted, Bitcoin’s bullish phase still has room to run. Past cycles demonstrate that the market has tolerated even higher unrealized profits before reversing. The data implies that while a pullback may be on the horizon, Bitcoin could continue its upward trend a bit longer before any significant cooling occurs. Related Reading Dogecoin Could Target $2.4 If Price Aligns With Macro Pattern – Details 1 day ago


In the coming days, investors will be watching closely for any signs of a consolidation phase or a potential retracement. Should Bitcoin maintain strong support levels, continuing this bull run remains plausible. However, if profit-taking intensifies, a correction could provide a healthy reset for Bitcoin to gather momentum for future gains. BTC Breaking ATH Almost Every Day


Bitcoin has shattered its all-time high seven times over the past eight days, fueling a highly bullish sentiment across the market. Currently trading at $90,620 after peaking at $93,483, Bitcoin’s price action remains strong, signaling sustained buying momentum. This surge has set a notably optimistic tone, but a brief correction period could provide a necessary reset after such an extended upward push. BTC trading above $90K after breaking ATH | Source: BTCUSDT chart on TradingView


Given the high buying pressure, a short-term pullback to establish a new market equilibrium would be a healthy development. This could allow Bitcoin to test lower demand levels and establish stronger support areas for its next leg up. If profit-taking intensifies in the near term, BTC could revisit the $85,000 mark as it seeks to stabilize. Related Reading Bitcoin Weekly RSI Entering Power Zone – Last Time BTC Soared 80% 2 days ago


In the coming days, investors will likely watch for this potential consolidation phase to gauge Bitcoin’s resilience. A successful retest of support around $85,000 would reaffirm confidence in the ongoing bull market, providing a stronger foundation for Bitcoin to push toward even higher levels. Overall, while the trend remains bullish, a balanced correction may be just what the market needs to maintain its momentum over the long term.


Featured image from Dall-E, chart from TradingView

News Feed

Airdrop token prices are crashing — Does Web3 need a new model?
Alex O’Donnell10 hours agoAirdrop token prices are crashing — Does Web3 need a new model?Tokens distributed in airdrops consistently underperform the market. Now, Web3 protocols are exploring new approaches.543 Total
‘Ponzi Schemes Have Created a Negative Reputation for the Industry’ — Uganda Blockchain Advocate
"Ponzi Schemes Have Created a Negative Reputation for the Industry" — Uganda Blockchain Advocate Education and awareness campaigns are still viewed as important channels that dra
Blockchain-Shy Bank of America Quietly Pilots Ripple Technology
Bank of America, the second-largest bank in the U.S., has quietly tested out Ripple’s distributed ledger technology – and may be planning to do more with it. Ripple we
Derek Andersen4 hours agoTerraform co-founder Shin blames protocol for collapse during trial in S. KoreaDaniel Shin claimed he and Do Kwon parted ways before the collapse of the Terra/Luna ecosystem was imminent and that
XRP Price Prediction To $4.9: How The 1-Day 50 MA Will Drive The Next Wave
Este artículo también está disponible en español. A crypto analyst has issued a new XRP price prediction, forecasting a potential breakout that could see the prominent cr
Another Bank Run Highlights China’s Brewing Financial Crisis
Another Bank Run Highlights China’s Brewing Financial Crisis A regional lender has become the latest victim of the growing liquidity crunch in the world’s most populous c
Coinbase Agrees to $100 Million Settlement With New York Financial Regulator for Anti-Money Laundering Violations
Coinbase Agrees to $100 Million Settlement With New York Financial Regulator for Anti-Money Laundering Violations Coinbase has agreed to pay a $100 million settlement with the New
Harbor Now Has Both Broker-Dealer and Transfer Agent Licenses in the US
Security token startup Harbor has secured a transfer agent license from the U.S. Securities and Exchange Commission (SEC). A month after receiving a broker-dealer license from the F
Tom Brady’s Estranged Wife Gisele Bundchen Claims FTX Collapse ‘Blindsided’ Her
Tom Brady"s Estranged Wife Gisele Bundchen Claims FTX Collapse "Blindsided" Her Former U.S. National Football League (NFL) quarterback Tom Brady’s estranged wife Gisele Bundc
Why is the crypto market down today?
Nancy Lubale5 hours agoWhy is the crypto market down today?The crypto market is down today as an unexpected sharp sell-off triggered a wave of liquidations in the derivatives market.1165 Total views1 Total sharesListen t
Circle proposes new capital-risk framework for stablecoins
Vince Quill3 hours agoCircle proposes new capital-risk framework for stablecoinsIn July 2024, Circle became the first stablecoin issuer to comply with the European Union’s Markets in Crypto-Assets regulatory framework.
Heated Debate Continues Over Bitcoin Cash Infrastructure Funding Plan
Heated Debate Continues Over Bitcoin Cash Infrastructure Funding Plan Last Wednesday, the founder of the mining operation Btc.top announced a proposal that would fund Bitcoin Cas