Bitcoin Hovers Around $120,000: What's Next?

by Murtuza J Merchant Benzinga Staff Writer

Zinger Key Points

Exchange inflows from short-term holders spiked, but matched outflows kept sustained sell pressure at bay.
Glassnode notes current profit-taking resembles prior cycle peaks but with less downside impact due to strong demand absorption.
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Bitcoin's BTC/USD price stability around the $120,000 mark comes as on-chain data shows profit-taking at historically elevated levels, according to a Glassnode report.

What Happened: The report notes that despite realized profit margins reaching peaks seen in only a handful of prior cycles, the market has so far absorbed the selling pressure without significant downside.

Glassnode's analysis finds that short-term holders are currently driving much of the realized profit activity, selling coins acquired at substantially lower prices.

The magnitude of realized profits has reached levels comparable to major market phases in the past, highlighting the scale of capital rotation taking place.

In contrast, long-term holders, wallets with coins held for extended periods, are showing limited distribution.

This relative restraint from older supply cohorts is contributing to a constrained sell-side environment, even as aggregate profits being realized are historically large.

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Why It Matters: The report also points to a sustained increase in transfer volumes to exchanges.

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While this typically reflects heightened trading activity, the market has yet to see the type of heavy spot sell pressure that could destabilize price levels.

Bitcoin's current market structure, according to Glassnode, is characterized by strong absorption of realized profits by buyers.

The resilience in price amid high profit-taking reflects the market's capacity to accommodate significant liquidity without breaking key technical thresholds.

Data from the report shows that realized profit margins, the difference between the current market price and the acquisition cost of coins being sold, are in the upper range of historical observations.

Yet, the absence of large-scale sell-offs from long-term holders continues to limit available supply on the market.

Glassnode concludes that the combination of constrained long-term holder supply and active short-term profit realization defines the present phase of the cycle, with elevated on-chain activity reinforcing the strength of current market conditions.

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