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Bitcoin Faces “Reduced Intensity” as Traders Target $115,000

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No Indications of Sell-Off in $8.6B Bitcoin Whale Transfer
No Indications of Sell-Off in $8.6B Bitcoin Whale Transfer

The following are key points.

  • Bitcoin’s momentum has slowed after the all-time peaks, but investors don’t waste time adapting to a rangebound market.

  • Profitability can be defined as the ability to generate profit. “cooled,” Glassnode is right, but new gains can still be made.

  • The traders are looking for an increase in liquidity at $115,000 if the BTC prices drop.

BitcoinBTC( ) is in the a “healthy yet fragile balance” Profits drop as BTC prices consolidate.

This latest edition of the “Market PulseGlassnode’s Monday report, “released by onchain analytics company Glassnode warns that new gains may not arrive soon.

Bitcoins with longer consolidation

Bitcoin taking a reasonable pause After its recent surge, the market may experience another long consolidation period.

Glassnode has revealed various signs investors have re-adjusted to BTC prices that are range bound.

“Profitability metrics have started to cool. The percentage of supply in profit and unrealized profit both declined slightly but remain in euphoric territory,” You can write. 

“The Realized Profit to Loss Ratio also pulled back, suggesting that while most investors remain in profit, some are starting to de-risk in light of recent gains.”

Profit-to loss ratio is a measure of coins that are moving between profit and losses compared with their previous transactions. Glassnode calls this drop of the metric from 3.9 to 2.6% “notable.”

“This reading hovers just above the high band of 2.7, indicating that realized profits still outweigh losses, though momentum has cooled,” This is why.

“The shift points to a market recalibrating after the recent ATH, with investors adopting a more measured stance amid reduced bullish intensity.”

Bitcoin real profit/loss ratio Source: Glassnode

This does not necessarily mean the bears have gained control. BTC/USD is not ending its upward march at $123,000. Instead, it appears to be coiling and securing new support.

In spite of this, the consolidation that is currently underway may still be problematic. copy previous cooling-off phasesGlassnode’s hint: Days can become weeks or more. 

“Overall, market conditions reflect a healthy yet fragile balance,” It concluded. 

“Seller exhaustion appears likely and ready for another potential leg up, but if profitability continues to weaken, the market may transition into a broader consolidation phase as sentiment cools and positioning normalizes.”

The liquidity of the market indicates a $115,000 retest

The bull run has paused, and Bitcoin traders are assessing where the new local lows might be.

Related: Bitcoin bull run ‘likely close to over’ says trader as XRP flips McDonald’s

Participants in the market have identified $115,000, a high price that is increasingly appealing.

“The longer price keeps hovering around this area, the more positions will be building up on both sides. Those positions will be fuel for wherever this moves next,” popular trader Daan Crypto Trades told X followers On Tuesday, I posted a message. 

“The main areas to watch in the short term are ~$115K-$120K. The biggest liquidity cluster currently sits below this local range at ~$115K.”

BTC liquidation heatmap. Source: Daan Crypto Trades/X

Due to the trading volume, a separate article also highlights $118,000 in a low-timeframe post as an important level.

The following are some of the ways to get in touch with us. Cointelegraph reportedIn Q2, liquidity played an important role in BTC’s price movements.

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.