Bitcoin tumbles will be ‘less abrupt’ after realized profit drops 76%

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Near-term Bitcoin price dips won’t likely be as violent as last week’s 10% plunge, as selling pressure has significantly eased after Bitcoin’s first spike above six figures, according to a crypto analyst — though others remain skeptical.

“With such a decline in realized profit and sell-side pressure, we can expect future declines to be less abrupt than the one experienced last week,” Bitfinex analysts said in a Dec. 9 markets report.

Signals of ‘easing sell-side pressure’ emerges

On Dec. 6, over 24 hours, Bitcoin (BTC) dropped almost 10% from $103,493 to under $93,000, just one day after surpassing the $100,000 price level for the first time on Dec. 5, according to CoinMarketCap data.

Cointelegraph reported that the sudden price decline from $98,338 to $92,957 triggered over $303.5 million in liquidations of long positions within the hour, pushing total liquidations over the 24 hours to $404 million.

However, Bitfinex analysts said signs of “market stabilization are emerging.”

“Realized Profit RP, which tracks the USD gains from moved coins, peaked at $10.5 billion daily during Bitcoin's surge towards $100,000. However, it has since fallen to around $2.5 billion per day, reflecting a 76 percent drop.”

They explained this suggests that profit-taking has “significantly cooled” and that further sell-offs may be “less dramatic in nature.”

At the time of publication, Bitcoin is trading at $97,483, according to CoinMarketCap.

The Bitfinex analysts also said that Bitcoin’s funding rates are “stabilizing” too, explaining that the market is transitioning to a “more balanced phase, where volatility is likely to be more contained and price movements less erratic in the medium term.”

The current funding rate for Bitcoin on the world’s largest crypto exchange, Binance, is 0.01%, according to CoinGlass data.

However, Glassnode lead analyst James Check remains uncertain about the market stabilizing.

“Sell-side pressure by existing holders is tremendous right now, and in my view, completely overwhelms the demand from both ETFs and MSTR,” Check said in a Dec. 9 X post.

“There are lots of heated signals,” Check added.

Long-term holders have been in significant profits

The Long Term Holder realized price — the average price paid by long-term Bitcoin holders — is $24,481, representing about a 400% average gain for long-term holders.

Cointelegraph recently reported that Bitcoin’s climb toward $100,000 has seen a significant amount of offloads from long-term holders. Some analysts say this could signal a potential top that could catch traders offside when buy-side demand starts to wane.

“It’s a game of musical chairs: enjoy the ride, but be prepared when the music stops,” CryptoQuant contributor Maartuun said on Dec. 8.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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