In the past week, Bitcoin has risen by approximately 7%, reaching $71,500 during today's trading. This trend is likely due to a sharp increase in the inflow of investment funds into sector-specific ETFs, which have attracted over $1.3 billion in the past two days. In this context, Glassnode specialists released a new report analyzing the current state of the cryptocurrency market.
They noted that as of June 4, only 0.3% of long-term holders were at a loss when the price of Bitcoin was around $68,000. Experts believe that as long as the main digital currency remains above the $69,000 mark, all long-term investors will stay in profit. However, Glassnode does not rule out the possibility of a deep correction in the near future.
This is due to the fact that a significant number of coin holders in the profit zone triggers the phenomenon of FOMO. It usually precedes significant price corrections as many traders prefer to lock in profits.
It is important to note that the growth in open interest volume can also be a harbinger of high volatility. Traders may simultaneously hold several open positions and drastically change their strategy. Finally, experts emphasized that there are large sell positions concentrated around the $72,000 level. This makes it likely that Bitcoin will struggle to break above this zone.
