- 75% of short-term Bitcoin holders are now in profit, boosting market sentiment.
- Bitcoin price holds key support level despite $3.9 billion in futures expiring.
- Bitcoin faces significant resistance at $68,000 with potential for short liquidations.
Three-quarters of short-term Bitcoin holders are currently in profit, potentially adding upward momentum to Bitcoin’s price. According to Glassnode’s report from July 24, Bitcoin’s rally has elevated prices above the cost basis of short-term holders, converting 75% of their held supply into unrealized profit. This recovery is tracked by the Short-Term Holder Market Value to Realized Value (STH-MVRV) ratio, which has climbed above the pivotal break-even level of 1.0. Such metrics are crucial as they provide insights into the buying and selling patterns of recent investors, reflecting broader market trends.
Despite the potential for volatility due to a significant $3.9 billion Bitcoin futures expiry, the cryptocurrency has maintained a price above the crucial $65,000 support level. This stability was noted in a July 26 post by cryptocurrency analyst Rekt Capital on social media platform X, who highlighted that Bitcoin’s successful retest of this support suggests that prices may continue to fluctuate within the $65,000 to $71,500 range.
Key Support Levels and Market Dynamics
While the recent price recovery is promising, Bitcoin faces substantial resistance at the $68,000 mark. CoinGlass data indicates that nearly $700 million in leveraged short positions could be liquidated if Bitcoin surpasses this level. Liquidations could exceed $1 billion if Bitcoin reaches above $68,500, contingent on inflows from US spot Bitcoin exchange-traded funds (ETFs). However, inflows into these ETFs have slowed since July 23, reaching $31.1 million by July 25, according to Farside Investors data.
