A high number of holders in profit is often seen as a sign of an overheated market, which typically precedes or coincides with price corrections. As a result of this onchain signal, Bitcoin’s price may see pullbacks over the coming days as investors choose to book profits. Bitcoin open interest remains highOpen interest (OI) on Bitcoin derivatives hit a near record high of $67.5 billion on May 14, as BTC came close to overcoming the resistance at the $106,000 level. “Bitcoin is starting to look pretty exhausted here, open interest caught up to the approximate levels of prior all-time high,” said pseudonymous trader Adam in a May 15 post on X, adding:“I think the move from 80,000 was significant enough not to see new lows, but this is not the place where I would open fresh longs.”Exchange BTC futures open interest Source: CoinGlassAdditionally, Bitcoin CME futures OI also hit a 90-day high of 146,950 BTC on May 13, worth approximately $16.5 billion at the time, as per CryptoQuant data. Bitcoin CME futures national OI.
Source: Cointelegraph/TradingViewOver 97% of Bitcoin’s holders are now in profitBitcoin’s recent break above $105,000 saw its price rise above the short-term holder realized price as this cohort of traders flipped some of their unrealized losses into profit. Data from CryptoQuant reveals that less than 2.8% of Bitcoin investors were still in a position of loss when the price hovered around $102,000 on May 15, subsequently accounting for 97% of the supply in profit.
Source: Cointelegraph/TradingViewFailure to flip $106,000 into support could cause the price to drop lower, with the accompanying long position liquidations pulling the price toward the year open at $93,000. Data from CoinGlass showed a wall of ask orders building up above $106,000, reinforcing the importance of this resistance area.
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Author / Journalist: Cointelegraph by Nancy Lubale
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