BTC Retail Profit-Taking Sets Stage for Potential Local Bottom

Bitcoin (BTC) is exhibiting signs of price consolidation following recent all-time highs (ATH), new analysis suggests. Increased inflows from short-term holders (STHs) – entities holding BTC for six months or less – are characteristic of profit-taking during bullish trends.

Key Findings & Explanations

• STH Inflow Spike: CryptoQuant’s analysis shows the Binance exchange inflow ratio from STHs recently surpassing 0.4. Historically, this threshold often coincides with “local bottoms.”
• Profit-Taking Behavior: The ratio “reinforces” the tendency of short-term holders to sell BTC during upward trends, particularly after ATHs reached last week.
• Binance Dominance: Despite the broader market reactivation driven by ATHs, Binance consistently showed the highest spot trading volume leading into and following the July 18 high.

BTC/USD Price Action & Order Book Focus

BTC has been trading between approximately $116,000 and $120,000. Traders monitor the exchange price action and ongoing discussions about seller exhaustion. Simultaneously, the exchange order book highlights a significant bid concentration at $117,500.

Last updated: July 25, 2024

This article is for informational purposes only and does not constitute financial or investment advice. Trading cryptocurrency involves substantial risk.