Bitcoin broke above $76,500 following an 8.9% daily gain, finally surpassing the long-standing $70,000 resistance level. Data from CryptoQuant reveals that profit-taking activities have surged, with the UTXO movement hitting a record high. However, analysts caution that this activity may represent risk reduction by short-term holders rather than euphoric profit-taking. The key level to watch is the Short-Term Holder (STH) realized price, which could either act as support or resistance. While Bitcoin’s MVRV ratio indicates significant unrealized profits, the SOPR remains below 1, signaling the market is not fully absorbing the selling pressure.
Bitcoin [BTC] traded at $76,522.29 following an 8.9% increase over the prior day, finally breaking through the long-tested resistance level of $70,000.
Given the current price action, Bitcoin is facing a record-breaking, largest profit-taking UTXO movement in history, as reported by CryptoQuant. At the same time, BTC is approaching a critical resistance zone where many recent buyers will finally have a chance to exit at breakeven.
However, this does not mean those coins are being sold, as there is still room for bearish pressure. The current scenario is more like risk reduction rather than big profit-taking, as BTC is rebounding from a period when many short-term investors were in a bearish slump.
According to CryptoQuant, “The all-time surge in profit-taking UTXO activity suggests that this sense of relief is already activating potentially movable supply.” For this momentum to sustain, the realized price of the Short-Term Holder (STH) is important to consider.
Investors who were previously underwater now have a chance to pull out around breakeven as Bitcoin gets closer to this level. The recovery might get stronger if high demand absorbs the selling, but the realized STH price may turn into resistance if sellers outnumber buyers.
Bitcoin’s MVRV ratio stood at 1.38 at press time, meaning Bitcoin’s market value was roughly 38% higher than its realized value. This indicates unrealized profits have rapidly increased across the market thanks to the price recovery.
However, the SOPR below 1 at 0.7 still indicates the market is not effectively absorbing profit-taking, urging caution.
