Three-quarters of short-term Bitcoin holders are now profitable, potentially giving Bitcoin’s price additional upward momentum.
This is thanks to Bitcoin’s recent rally, as outlined in a July 24 report by Glassnode:
“This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit. This can be seen within the STH-MVRV metric, which has now recovered above the break-even level of 1.0.”
Bitcoin’s price rally offers significant relief for short-term holders, the cohort that saw over 90% of its supply in the red during late July.
The short-term holder cohort is often used as a proxy for investors looking to gauge Bitcoin demand and recent buying patterns.
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Bitcoin settles above key support level despite $3.9 billion futures expiry
Bitcoin’s price managed to settle above a key support level, despite a $3.9 billion BTC futures expiry that threatened to take it to the $63,000 mark.
Following the rally, Bitcoin needs to hold above the current $65,000 mark, which acts as a key support, according to popular crypto analyst Rekt Capital, who wrote in a July 26 X post:
“The retest was successful. Bitcoin has confirmed $65,000 as support. Price will now continue to occupy the $65000-$71500 region (red).”
Related: Japan crypto ETFs boosted by Franklin Templeton and SBI Holdings partnership
BTC faces significant resistance at $68,000
Despite the bullish price recovery, Bitcoin faces significant resistance at the psychological $68,000 mark.
Nearly $700 million worth of cumulative leveraged short positions stand to be liquidated across all exchanges if Bitcoin manages to rise above the $68,000 mark, according to CoinGlass data.
Short liquidations would surpass $1 billion above the $68,500 mark, but reaching that level would depend on the inflows from the US spot Bitcoin exchange-traded funds (ETFs).
Inflows into the US spot Bitcoin ETFs have been slowing down since July 23, reaching $31.1 million in cumulative inflows on July 25, according to Farside Investors data.
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