Bitcoin Price Retraces to $102,004 After Brief Surge Above $104,000
Bitcoin's price has retraced to around $102,004, marking a 1.2% dip after reaching over $104,000 earlier in the week. The cryptocurrency remains up nearly 20% for the month but is 6.4% below its all-time high of $109,000 from January.
Trends in Long-Term Holder Behavior
- Long-term holders (LTHs) have increased their realized profits significantly, with the Bitcoin SOPR rising by 71.33% since March 12.
- The SOPR for LTHs reached 2.27409 as of May 13, indicating an average return of 227.41% on sold coins.
- An investor buying BTC at $50,000 would realize approximately $113,705, netting $64,000 in profit.
- This trend suggests cautious profit-taking ahead of potential market corrections.
Mixed Signals from LTH Activity
- Another analyst notes that while some profit-taking occurs, LTHs are not significantly selling, as indicated by a decline in the SOPR metric.
- This behavior contrasts past trends where early adopters typically distributed during rallies.
- The current trend may suggest stronger conviction among institutional or strategic holders.
- If this continues, Bitcoin might resume its upward momentum once short-term selling pressure decreases.
Bitcoin is likely to resume its bullish trend following this pause, potentially leading to new all-time highs in the mid-term.
