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Bitcoin Market Remains Balanced with Potential for 2025 Rally to $250,000
Based on the on-chain analysis from Glassnode, while Bitcoin's price is slowly climbing above the local floor of $112,000, short-term holder selling activity—particularly among those who are in profit—is decreasing.
Glassnode reported on Wednesday that the profit-taking by short-term Bitcoin holders (those holding for less than 155 days) has begun to decline. The volume of spent short-term Bitcoin, indicating recent buyers in profit selling, has dropped to 45%, which is below the neutral level of 50%.
This data suggests the market remains relatively balanced, with about 70% of short-term holders still in profit and a near equilibrium between selling in profit and selling at a loss among active coins. Historically, such levels align with midpoints of previous bull market phases and are not considered exceptional levels.
The behavior of short-term Bitcoin holders is closely watched by traders, as history indicates they tend to sell more during volatile periods. This is happening amidst Bitcoin's retreat to around $112,044 during the weekend; at the time of writing, the price is approximately $114,766.
Checkonchain also highlighted that the STH SOPR index suggests that recent buyers near all-time highs, now in losses, are selling more than those in profit, essentially just trying to break even.
Despite recent price corrections, bullish outlooks remain. Analysts like Tom Lee from Fundstrat forecast Bitcoin could reach $250,000 by 2025. He believes Bitcoin should surpass the $120,000 mark before year-end, potentially moving toward $200,000 or even $250,000.
In conclusion, the current market signals reflect a cautiously optimistic stance for Bitcoin's ongoing upward trend, supported by on-chain metrics and prominent analyst predictions for a strong 2025.
Glassnode reported on Wednesday that the profit-taking by short-term Bitcoin holders (those holding for less than 155 days) has begun to decline. The volume of spent short-term Bitcoin, indicating recent buyers in profit selling, has dropped to 45%, which is below the neutral level of 50%.
This data suggests the market remains relatively balanced, with about 70% of short-term holders still in profit and a near equilibrium between selling in profit and selling at a loss among active coins. Historically, such levels align with midpoints of previous bull market phases and are not considered exceptional levels.
The behavior of short-term Bitcoin holders is closely watched by traders, as history indicates they tend to sell more during volatile periods. This is happening amidst Bitcoin's retreat to around $112,044 during the weekend; at the time of writing, the price is approximately $114,766.
Checkonchain also highlighted that the STH SOPR index suggests that recent buyers near all-time highs, now in losses, are selling more than those in profit, essentially just trying to break even.
Despite recent price corrections, bullish outlooks remain. Analysts like Tom Lee from Fundstrat forecast Bitcoin could reach $250,000 by 2025. He believes Bitcoin should surpass the $120,000 mark before year-end, potentially moving toward $200,000 or even $250,000.
In conclusion, the current market signals reflect a cautiously optimistic stance for Bitcoin's ongoing upward trend, supported by on-chain metrics and prominent analyst predictions for a strong 2025.
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AI Analysis
The analysis from Glassnode indicates that despite Bitcoin's gradual increase beyond the recent support level of $112,000, the activity among short-term holders—especially profit-taking—is diminishing...
AI Recommendation
Given the current on-chain metrics and the bullish forecasts, I recommend maintaining a cautious but optimistic outlook on Bitcoin. Investors should consider accumulating gradually, especially if dips...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.