- In one week, the price of BTC was able to climb to its 2023 high before dropping back down to $40.2K on Sunday.
- Glassnode data suggests that short-term holders could be behind the drop in BTC’s price.
- BTC’s price dropped by a further 2% over the past day, which brought its trading value down to $41,113.63.
The market intelligence platform, Glassnode, shared in a n X post yesterday that Bitcoin (BTC) had a “round-trip” week. This came after the market leader was able to climb to a new yearly high price of $44.6K before dropping sharply to $40.2K on Sunday.
BTC’s move up to its yearly high was fueled by two rallies of over 5%. However, the cryptocurrency’s selloff was just as powerful, dropping by more than $2.5K. This marked BTC’s third largest downward move of 2023.
After a very strong year, BTC seems to have met very strong resistance. Glassnode data indicates that there are several indicators suggesting a “degree of near exhaustion” in the price of BTC.
In fact, several of Glassnode’s on-chain models reveal that BTC’s “fair value”, based on investor cost basis and network throughput, is currently hovering around $30K and 36K. According to the intelligence platform, BTC’s price pullback is likely caused by profit taking from short-term holders (STHs).
A report from glassnode points out that STHs have been sending lots of bitcoins to exchanges. The cryptocurrency king’s rally to $44.2K also likely provoked STHs to take profit to take advantage of demand liquidity. The realized profit of STHs increased by more than one standard deviation over the last 90-day average, noted the report.
According to CoinMarketCap data, BTC’s price correction is still ongoing as the market leader’s price slipped by over 2% in the past day of trading. This meant that the token was worth $41,113.63 at press time.
BTC’s latest price decline also ended up pushing its price performance on the weekly time frame down by about 5.90%. On the other hand, BTC’s longer-term successes were still visible in the fact that it was up by more than 10% on the weekly time frame.
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