Bitcoin Bull Run Continues Despite Profit-Taking

Despite recent profit-taking, Bitcoin (BTC) shows signs of continued bullish momentum, according to new research from Santiment. The market's resilience is noteworthy, even with a significant price correction and a notable whale liquidation event.

Bitcoin Profit-Taking: A Bull Market Validator?

Santiment's latest Biweekly Report suggests that the current profit-taking is not necessarily a bearish signal. Instead, it points to the Mean Dollar-Invested Age (MDIA) metric, which measures how long coins remain in wallets. A falling MDIA, indicating shorter holding times, has historically been a positive indicator during bull cycles. This suggests that older coins are re-entering circulation, fueling network growth and continued upward price pressure.

Key Findings from Santiment:

• Falling MDIA since mid-April signifies increased coin activity.
• Shorter holding times are a historical indicator of sustained bull markets.
• The market isn't solely driven by short-term speculation, supporting long-term bullish sentiment.

The average time coins are held has decreased from 443 to 426 days in the past six weeks, a modest decrease.

Whale Liquidation and Market Impact

The recent 10% correction, pushing BTC below $105,000, saw a notable liquidation event. Hyperliquid's James Wynn experienced a $99 million liquidation of his long BTC position. While such events can cause short-term price drops, the overall market sentiment remains bullish, with many expecting a healthy support retest before further upside.

Despite the significant liquidation, large volumes of BTC are still leaving exchanges, suggesting continued accumulation by long-term holders. One notable recent transaction involved 7,000 BTC, further supporting the bullish narrative.

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Disclaimer: This article does not provide financial advice. All investments involve risk, and readers should conduct their own thorough research.