Following a new all-time high of $123,231, Bitcoin's price has corrected, declining by more than 5%. This comes amid profit-taking by investors.
Reasons for Bitcoin Price Correction
According to Glassnode's data, the price correction is closely aligned with a significant spike in realized profits. Investors collectively realized over $3.5 billion in profits, of which $1.96 billion was from long-term holders and $1.54 billion from short-term holders. The high level of profit realizations by long-term holders indicates a maturity in their market position.
Support Level at $110K
Despite the current correction, some analysts remain optimistic. Expert Mister Crypto suggests that the recent decline may be healthy for the broader upward trend. If Bitcoin's price returns to the EMA levels around the $110K mark, it could serve as an ideal bounce zone.
Institutional Investments and Long-Term Predictions
Mister Crypto also pointed out that Bitcoin treasury companies, which include public firms holding BTC on their balance sheets, now collectively hold more than half of the total Bitcoin held by all ETFs. This indicates a growing long-term institutional interest in Bitcoin, which may influence future price movements.
In conclusion, the current correction in Bitcoin's price is a result of profit-taking by long-term holders, along with support from institutional investments, creating intriguing dynamics in the market.
