The Bitcoin market has witnessed intense activity in recent weeks, with a price surge that has led short-term holders of this cryptocurrency to secure profits close to $5 billion.
This rally of bullish investors in profit peaked at $38,800 in early December, marking a 7% growth in the price of Bitcoin.
This increase was especially significant for holders who hold the cryptocurrency for a period of less than 155 days, known as “short-term holders” (STH).
The STH profit-taking phenomenon has been reminiscent of the activities seen during Bitcoin’s all-time high in 2021, when it reached $69,000.
This behavior suggests that more speculative investors are taking advantage of this rally to lock in profits, selling their assets as the price rises.
These investors, characterized by their speculative nature, have been making significant movements in response to the dizzying rise in the price of Bitcoin.
This classification of holders, highlighted by CryptoSlate, has been instrumental in defining the current market trend, as their activity has been closely linked to Bitcoin price support over the course of the year.
Long-term investors, known as hodlers, show notable resilience in holding their Bitcoin
It seems that these Long investors are focused on their long-term strategy and are not influenced by short-term fluctuations in the market.
The recent rise in Bitcoin price has raised expectations that the cryptocurrency could be heading towards levels close to its all-time high.
This has been attributed to macroeconomic and domestic market factors.
On the other hand, potential obstacles have been identified on the path to new highs, including Fibonacci retracement levels that have been historically relevant in previous Bitcoin bull markets.