In the aftermath of the October 10 market crash, which saw the price of Bitcoin reach a level of $101,500, the market is showing a recognizable bearish on-chain structure. While the selling momentum appears to be slowing, providing a glimmer of hope to potential market participants, recent on-chain analysis seems to point to caution as the more appropriate sentiment in the short term.
Realized profits increase to $2.25 billion
In an Oct. 11 post on social media platform X, technical and on-chain analyst Darkfost said revealed that many Bitcoin investors may still be making a profit from their latest purchases.
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In the post on X, Darkfost quoted results obtained from net realized profit/loss [USD] 7-day MA indicator. This metric tracks the average daily difference between the total amount of realized profits and losses from trades over the past seven days.
For context, realized gains refer to the total USD amount of Bitcoin sold at prices above the purchase level, showing that investors are selling in the green. On the other hand, realized losses reflect the total dollar value of Bitcoin selling below the purchase price.
The analyst stated that the seven-day moving average of the net realized profit/loss metric recently peaked at $2.25 billion, the fourth highest level in the current market cycle. Meanwhile, the metric’s weekly average is well above $1.6 billion, indicating that profit-taking is still at high levels.
Darkfost noted that if the Bitcoin market continues to witness this magnitude of profit-taking, it could take a while for the leading cryptocurrency to switch from the current bearish sentiment to a more bullish one.
$99,000-$104,000 could be the next price support
In another post on
According to the analyst message on XThere is a fair amount of spot bidding in this price range, enough to act as a support zone to keep the Bitcoin price afloat.
So the next market trajectory appears to depend on whether investors’ profit-taking will remain high. In the scenario where this is the case, the $99,000-$104,000 price range could be the next zone to watch.
In an upside scenario, Pillows explained that the $119,000 price level and other zones above contain the most sell orders currently on the market.
At the time of writing, Bitcoin is worth approximately $111,772, reflecting a gain of more than 1% in the past 24 hours.
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Featured image from iStock, chart from TradingView