Last week, Bitcoin (BTC) rose above $44,000 but corrected after facing significant resistance near $45,000.
According to a report by an analyst at market analysis platform CryptoQuant, profit-taking by a certain group of investors may have caused the BTC price to retrace.
CryptoQuant analyst Yonsei discovered through onchain data analysis that when the BTC price broke through the $40,000 resistance level, short-term holders and 6-18 month investor groups showed profit taking.
The move towards profit taking is evidenced by the fact that the majority of BTC holders are profitable. Bitcoin's Spent Output Profit Ratio has remained above 1 for a long time, indicating that about 90% of holders are profitable.
While short-term holders sold their BTC at high margins, a group of holders who held Bitcoin for six months dumped their BTC just before the cryptocurrency price dropped from $44,000. On the other hand, long-term holders still firmly stand their ground, refusing to sell their assets and predicting higher prices.
CryptoQuant revealed in its most recent weekly report that the cryptocurrency market has seen selling pressure from Bitcoin Miners and whales. Miners ' high withdrawals last week suggest they sold more assets as BTC soared to $44,000 with an Medium profit margin of 40%.
At the moment, with the bear market now over and the liquidation conditions of the cryptocurrency market improving, Bitcoin is hovering around $43,000.
