Bitcoin Holders Anticipate Higher Prices as Unrealized Profits Reach $7 Billion
Bitcoin investors are eagerly waiting for the cryptocurrency to reclaim the $70,000 price level, with many choosing to HODL in anticipation of higher prices. According to a recent CryptoQuant analysis, Bitcoin currently has over $7 billion worth of unrealized profits, highlighting the level of HODLing going on and expectations of higher price levels. However, this also underscores the potential for a massive retracement if profit-taking resumes. If Bitcoin holders start taking profits off the table, sell pressure may lead to an outcome similar to what happened towards the end of July when the price crashed hard in a matter of days. Despite this potential risk, at press time, Bitcoin was trading at $68,350 and appeared to be closing in on its next resistance range between $69,400 and $71,500.
Exchange Flows at Lowest Levels This Year; Could Indicate Bullish Wave Ahead
The latest uptick in both exchange inflows and outflows occurred between October 13-16 but has since cooled down to their lowest levels this year according to data from CryptoQuant. Exchange flow swings suggest that BTC might be ready for a volatility resurgence; however, it remains unclear whether another swing up will have bullish or bearish energy. The number of active sending addresses has been declining since mid-October while receiving addresses have grown – suggesting declining sell pressure despite recent price hikes. While these outcomes indicate that Bitcoin may push higher further still – a surprise wave of sell pressure could still be on cards ahead.
