Glassnode: Bitcoin Short-Term Holders Start Taking Profits, But Upside Potential Remains

On May 16th, Glassnode announced that the short-term holders of Bitcoin have begun to take profits. The Short-Term Holder Realized Profit has surged to approximately 3 standard deviations above its 90-day average, signifying a notable increase in profit-taking activities. Nevertheless, in past cycles, particularly during price rallies reaching All-Time Highs (ATH), this metric frequently rose to over 5 standard deviations. This implies that in order to overcome the continuous inflow of buying demand, typically a stronger profit-taking pressure is required. The rise of Bitcoin to near its ATH has been primarily driven by the spot market, reaping benefits from strong on-chain accumulation and off-chain inflows. The demand mainly stems from spot ETFs and major spot exchanges such as Coinbase. A crucial cost support area has formed around $95,000, accompanied by a slowdown in selling pressure, further strengthening this upward trend. However, the derivative market appears to be lagging behind. The open interest and funding rates are not fully in line with the upward momentum of the spot market. The positions in the options market exhibit a cautious yet optimistic attitude, while the futures market currently shows little evidence of excessive long leverage.