Bitcoin [BTC] has injected fresh optimism into the cryptocurrency market by shattering the $60,000 price barrier and inching closer to a key resistance level, triggering substantial profits for some large investors and triggering the liquidation of numerous short positions.
Bitcoin Whales Cash Out Profits
Examination of Bitcoin’s daily chart reveals a breakthrough of its short-term resistance on September 17th. The barrier, marked by its short-term moving average (depicted as a yellow line), was breached as BTC surged over 3%, climbing to around $60,300.
Subsequent to this breakout, Bitcoin embarked on consecutive upward movements, concluding the latest trading session near $63,362.
Statistics from Santiment highlight that this surge prompted some significant Bitcoin holders to lock in profits. In the past 96 hours, these major players offloaded more than 30,000 BTC, equivalent to roughly $1.86 billion.
Despite the notable sell-off, Bitcoin maintains its bullish outlook, as evidenced by its Relative Strength Index (RSI) sustaining levels above 60.
Bitcoin MVRV Reflects 5% Profit Margin
The recent price surge has placed short-term Bitcoin holders in a profitable position. Analysis of the 30-day Market Value to Realized Value (MVRV) ratio from Santiment reveals a shift into positive territory on September 17th, with the indicator currently hovering near 5%.
This signifies that investors within this timeframe are enjoying an average profit of nearly 5%, aligning with the gains observed by whales in recent trading sessions.
Sharp Rise in Liquidations for Short Positions
As Bitcoin’s uptrend unfolds, a notable surge in liquidations of short positions has been observed. Insights from Coinglass indicate liquidations amounting to over $146 million for short positions between September 17th and 21st.
In contrast, long positions witnessed liquidations of approximately $63 million within the same timeframe.
Furthermore, the positive BTC funding rate has been sustained over the preceding weeks, reflecting a higher influx of buyers into the market relative to sellers—an encouraging development for Bitcoin.
This trend could potentially help Bitcoin withstand the selling pressure resulting from profit-taking by whales.