Bitcoin’s recent surge past the $60,000 mark has injected fresh optimism into the crypto market, pushing towards another crucial resistance level. This upward momentum has allowed prominent whales to capitalize on substantial profits and trigger a wave of short position liquidations.
Profit-Taking by Bitcoin Whales
Analysis of Bitcoin’s daily chart reveals the breakthrough of its short-term resistance on September 17th. This resistance, marked by the short-term moving average (depicted by the yellow line), was shattered as BTC soared by over 3%, pushing past $60,300.
Following this breakout, Bitcoin embarked on a series of upward movements, culminating in a closing price of around $63,362 in the last trading session.
Data sourced from Santiment shows that this price surge spurred several BTC whales to cash in on profits. In the past 96 hours, these major holders offloaded over 30,000 BTC, valued at approximately $1.86 billion.
Despite this considerable sell-off, Bitcoin’s outlook remains bullish, as indicated by its Relative Strength Index (RSI) maintaining a level above 60.
Bitcoin’s MVRV Unveils 5% Profit Margin
Recent price hike has pushed short-term Bitcoin holders into profitable territory. Analysis of the 30-day Market Value to Realized Value (MVRV) ratio by Santiment confirmed its transition into positive territory on September 17th, nearing the 5% mark.
This milestone signifies that holders within this timeframe are netting an average profit of close to 5%, aligning with the gains realized by whales in recent trading days.
Surge in Liquidations of Short Positions
As Bitcoin’s uptrend gained momentum, there was a notable spike in the liquidation of short positions. Coinglass analysis pointed out that over $146 million worth of short positions were liquidated between September 17th and 21st.
In sharp contrast, long positions witnessed liquidations totaling around $63 million during the same time frame.
Furthermore, the BTC funding rate has maintained a positive trajectory in recent weeks, reflecting a higher influx of buyers into the market compared to sellers—an encouraging signal for Bitcoin’s performance.
This trend could potentially aid Bitcoin in absorbing any selling pressure brought about by profit-taking among the whales.