Bitcoin’s price slips, but here’s why the bulls aren’t backing down

The Bitcoin holders saw increased profit over the past six weeks. The idea that profit-taking might be ending came from the total supply held by short-term holders. Bitcoin [BTC] witnessed an increasing number of holders in profit, raising concerns that this may lead to profit-taking and another price depression. The weekly crypto asset flow showed BTC saw a $1.84 billion inflow. This had helped the crypto leader push toward $98k, but selling pressure has since taken over in the short term. The fears of further profit-taking might be unfounded. The metrics examined showed that the market was still in a bullish phase, and the drop from $98k to $93k was a normal pullback, just another bump in the road. Source: Glassnode The percentage supply in profit has risen over the past month as BTC recovered from $80k. However, it was only at 87% at press time, nowhere near the 95% value that tends to mark medium-to-long-term tops. Therefore, Bitcoin was still in a bullish phase and not under immediate threat from profit-taking activity. Other Bitcoin metrics agreed with the bullish outlook Source: Glassnode The Bitcoin NUPL measures the difference between relative unrealized profit and loss and was at 0.528 at press time. This outlined a bullish phase for the market. The market sentiment can be described as “belief” in a further rally, but it has not overextended yet. Source: Glassnode The Spent Output Profit Ratio (SOPR) has been rising recently, standing at 1.02 at press time. Values above 1 indicate a continuation of bullish market conditions, as it indicates holders selling for profits, which happens during bullish phases. Higher SOPR values alongside rising demand would reinforce the idea of a healthy Bitcoin market. Source: Glassnode The idea that profit-taking might be over came from the total supply held by short-term holders. This metric has been in a steady decline since early March. This was a sign that many of these STH holders were transitioning to long-term holders (LTHs) after holding BTC beyond the 155-day threshold. The downtrend in the metric outlined profit-taking activity, but over the past ten days, it did not form a new lower low. It could be another early sign, yet unconfirmed, that the corrective phase was ending. Overall, Bitcoin showed signs of bullishness. Although this does not guarantee an immediate rally, the market was not overextended, and profit-taking activity could be slowing down. Source: https://ambcrypto.com/bitcoins-price-slips-but-heres-why-the-bulls-arent-backing-down/