If we are to believe CryptoQuant analysts, whales are currently taking profits to take advantage of the massive increase that Bitcoin has experienced since the start of 2023. From the start of the year, Bitcoin has jumped 72.79 percent to its current price of $28,500. Last night, the exchange rate of $ 29,000 was even briefly broken.
Whales take profit
After weeks of price increases, the blockchain now seems to be showing us that it may be time for a break. Whales, entities that generally own large amounts of Bitcoin, are starting to sell some to realize profits.
In that respect, there is a chance that we will go down in the coming days. “On-chain data shows that there are three circumstances that are relevant in the context of the current rally,” CryptoQuant said in a statement. note to CoinDesk.
“Short-term holders are taking profit on the largest profit margin in more than a year. There is a significant increase in the spending activity of major Bitcoin holders (whales) and a small decrease in their holdings. Also, the price is slowly becoming overvalued,” CryptoQuant wrote in the note, according to CoinDesk.
Short Term Output Profit Ratio
Dates of the Short Term Output Profit Ratio CryptoQuant’s tool, which calculates the ratio of price received to price paid for assets held at the same address between 1 hour and 155 days, peaked above 1 last week.
That generally means investors are selling Bitcoin for a profit. After all, to achieve a score of 1, the price received must be higher than the price paid for the asset.
Whale wallets show a total of 320,000 Bitcoin were moved or issued by major entities last week. Despite that, CryptoQuant says we are “clearly in a bull market.” In doing so, they seem to suggest that short-term concerns have no long-term relevance.