ITB asked whether this time will be different than the previous similar occasions.
Bitcoin’s price is on the run again, as the asset has jumped past $65,000 for the first time in a month.
This has more than 90% of its holders in profit, which could actually mean danger for the largest cryptocurrency.
IntoTheBlock’s tweet was just minutes ago, but the landscape has already changed. It reads that over 90% of BTC investors would be in profit should the underlying asset’s price break above $65,000.
The cryptocurrency stood at around $64,000 but went on the offensive in the following minutes and surged to $65,260. This has become its highest level since August 2nd and is the third occasion since then when BTC’s price has tapped $65,000.
Bitcoin/Price/Chart 26.09.2024. Source: TradingView
Bitcoin/Price/Chart 26.09.2024. Source: TradingView
Nevertheless, reaching such high levels of investors in profit could result in potential price corrections. This is because many tend to offload their assets in such environments when their holdings are in the green.
This is what transpired back in July when the holders in profits reached the same levels of over 90%. In the following months, BTC’s price crashed as many realized profits.