A study released July 24 by Glassnode says that Bitcoin’s recent rise has put three-quarters of short-term holders in a profitable position, which could lead to even more price increases.
The report pointed out that the rally has raised the cost base for short-term holders (STH), and that 75% of their supply is now in unrealized profit. This is shown by the STH-MVRV metric rising above the break-even level of 1.0.
Bitcoin Holds Key Support
Short-term holders were extremely pleased with the price increase because more than 90% of their stock was in the red in late July. People who hold BTC are often seen as a sign of how much people want it and how they’ve been getting it lately.
Even though a $3.9 billion BTC futures expiration could have sent the price of Bitcoin down to $63,000, it was able to stay above a key support level. In a July 26 post on X, well-known crypto expert Rekt Capital said that Bitcoin’s successful retest has confirmed $65,000 as a support level. This means that the price is likely to stay between $65,000 and $71,500.
But BTC faces a lot of trouble at the psychological $68,000 mark. According to data from CoinGlass, nearly $700 million in leveraged short positions could be closed if BTC goes above $68,000.
If Bitcoin goes above $68,500, more than $1 billion in positions could be closed, depending on how much money comes in from US spot Bitcoin ETFs.
Since July 23, these ETF inflows have been slowing down. By July 25, they had added a total of $31.1 million, according to figures from Farside Investors.
