Bitcoin (BTC) slipped back below $80,000 after testing the level again, with XWIN Japan pointing to profit-taking by existing holders as a major barrier on August 26.<\/p>\n
The next move may depend less on another brief test of $80,000 and more on whether fresh demand can absorb units being sold by investors sitting on gains.<\/p>\n
XWIN Japan noted<\/a> that nearly every Bitcoin investor group has returned to profit as the cryptocurrency approached $80,000.\u00a0Its unrealized PnL reading stood at 21.1 for long-term holders, 13.4 for short-term holders, 13.9 for investors holding for one day to one month, and 5.3 for the newest buyers.\u00a0That creates a familiar problem during a fast recovery: more profitable holders have a reason to sell.<\/p>\n The post also pointed to the SOPR Ratio, which compares profit-taking by long-term holders with that of short-term holders. The ratio briefly reached 1.4 as BTC neared $80,000, suggesting long-term holders were realizing profits at a higher relative rate. However, it has since fallen to 0.93, meaning short-term holders are now showing stronger realized performance relative to long-term holders.<\/p>\n As per XWIN, any sustained breakout above the $80,000 mark, coupled with rising ETF and spot demand, might be one way through which Bitcoin can reach the $88,000-$90,000 price point. However, it pointed out that the $75,000-$76,000 mark is the level to pay attention to if prices decline further. Failure at this level may make it difficult for the short-term holders to earn a profit, which, in XWIN\u2019s opinion, could speed up the correction.<\/p>\n \u201cThe key question is not whether Bitcoin can briefly touch $80,000, but whether new demand can absorb selling from profitable holders,\u201d the research firm concluded.<\/p>\n Another analyst, BorisD, also pointed<\/a> to fading buying pressure at higher prices, noting that Binance\u2019s volume delta, which tracks the difference between aggressive buying and selling, fell from $1.17 during Bitcoin\u2019s move from $63,000 to $70,000 to about $350 million near $80,000.<\/p>\n The other major exchanges showed much flatter readings. BorisD argued that the market may need a period of consolidation before attempting another breakout. But the backdrop remains more supportive than it was a week ago.<\/p>\n As CryptoPotato<\/em> reported, BTC climbed from below $65,000 on August 19 to above $81,000, helped<\/a> by Treasury buyback plans, renewed ETF demand and more than $4 billion in short liquidations.<\/p>\n Nearly $2 billion entered<\/a> US spot Bitcoin ETFs over five days, while Treasury buybacks of longer-dated debt were increased from $2 billion to at least $4 billion per operation.<\/p>\n Bitcoin was trading around $79,000 at the time of writing, down 2% over 24 hours but still up 23% in the last seven days and 21% over the month, even after a year that has left it down close to 28% and about 37% below its all-time high of over $126,000, set last October.<\/p>\n The post Bitcoin Could Hit $90K \u2013 But This Major Test Comes First, Analysts Say<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin (BTC) slipped back below $80,000 after testing the level again, with XWIN Japan pointing to profit-taking by existing holders as a major barrier on August 26. The next move may depend less on another brief test of $80,000 and more on whether fresh demand can absorb units being sold by investors sitting on gains. […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-218583","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/218583"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=218583"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/218583\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=218583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=218583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=218583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Momentum Has Cooled After a Huge Weekly Move<\/h2>\n