Bitcoin (BTC) Sees Rebound After Recent Price Correction, Profit-Taking Behaviour Among Investors Subsided

Bitcoin came close to hitting the six-digit milestone before its recent price correction, reaching an all-time high of $99,645—a nearly 170% year-to-date increase.

This remarkable price performance, followed by the recent price dip, has sparked discussions about the state of the market, particularly the profit-taking behaviour observed among investors.

An analysis by a CryptoQuant analyst known as Darkfost sheds light on these dynamics, focusing on realized profits and investor behaviour linked to Binance, one of the largest cryptocurrency exchanges globally.

Related Reading: Bitcoin’s Price Dip Triggers Alert On NVT Golden Cross—Here’s What To Watch For

Are Investors Actively Taking Profits Now?

According to Darkfost, tracking the profits realized by investors transferring Bitcoin to Binance can provide “valuable insights into the broader market sentiment and behaviour, especially considering Binance consistently handles higher volumes than any other exchange.”

He notes that following Bitcoin’s breakout to a new high, there has been a noticeable increase in realized profits among the Binance cohort.

This trend reflects a significant level of investor engagement, where users are capitalizing on the price surge to secure gains. However, Darkfost emphasizes that the scale and pace of profit-taking—whether aggressive or steady—could help determine the trajectory the market is headed to next.

The analyst highlights that profit-taking activity on Binance has recently paused after an initial surge. This pause in selling behaviour may suggest growing confidence among investors in Bitcoin’s potential for further gains.

However, Darkfost stresses the importance of monitoring these metrics, particularly the realized profits exceeding $10 million. Significant profit-taking could indicate a cooling-off period or even a reversal in an upward trend, while a steady approach may reinforce the strength of the ongoing rally.

Bitcoin Sees Rebound

After setting a new all-time high, Bitcoin’s price took a downturn and dropped to as low as the $90,000 price point. This price action was followed by a flattening of the asset’s price, and now, the coin seems to be experiencing a rebound.

Related Reading: The Current Correction In Bitcoin Is The Last Before A Major Rally—Here’s Why

The world’s leading cryptocurrency experienced a slight increase in its price over the past 24 hours. At the time of writing, Bitcoin is priced at $94,656, following a 2.3% price surge in the past day. This price brings BTC’s total loss from its all-time high to 5.1%.

Along with its price, BTC’s market cap valuation has also seen a surge. Over the past day alone nearly $80 billion has been added to the crypto’s market cap, which rose from $1.8 trillion on November 26 to $74 trillion as of today.

Featured image created with DALL-E, Chart from TradingView