High volatility in crypto prices is making it difficult for retail traders to hold on to their positions. Even long term holders have been reducing their stakes in some of the hottest cryptocurrencies, during the ongoing crypto winter. That the number of whale addresses holding Bitcoin are currently at a 29 month low explains the reality. Meanwhile, a majority of Bitcoin (BTC) holders look to short the cryptocurrency for small profits. Also, there have been calls to ‘buy the dip‘ as BTC fluctuated in high frequencies.
Bitcoin Profits – The Common Exit
With BTC price surging at a steadfast pace in past few days, it appeared that many a trader looked to make a decent profit. On September 26, there was a huge shift in BTC selling and profit making patterns. According to Santiment Insights, there was a massive surge in BTC profit taking orders filled in. The on chain data indicates a 3.5 times rise in BTC transactions that were completed in profits. There was profit making activity particularly when BTC price was above $20,000. Mass profit making followed following the key price mark.
“Many traders were apparently awaiting the $20k threshold to begin selling their bags. As Bitcoin crossed back above this psychological level, mass profit taking ensued. Now we find out whether those anxious to sell will regret their decisions.”
BTC Heading For A Dip?
On the same day, BTC price swiftly rose by around 6% from the $19,200 range. As of writing, the cryptocurrency’s price stands at $19,127.27, down 0.29% in the last 24 hours, according to price tracking platform CoinMarketCap. Meanwhile, there has been increased social dominance around the chance to buy the BTC dip. In the past few days, the social activity on crypto market has been declining quickly. But the number of mentions for picking the dip has been abnormally high considering the ongoing bear market cycle.
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