{"id":636452,"date":"2024-08-20T03:30:25","date_gmt":"2024-08-20T03:30:25","guid":{"rendered":"https:\/\/uniquehot.com\/?p=636452"},"modified":"2024-08-19T15:10:00","modified_gmt":"2024-08-19T15:10:00","slug":"bitcoin-holders-loss-taking-sign-turnaround-near","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/bitcoin-news\/bitcoin-holders-loss-taking-sign-turnaround-near\/","title":{"rendered":"Bitcoin Holders Now Doing Loss-Taking: Sign That A Turnaround Is Near?"},"content":{"rendered":"

On-chain data shows that Bitcoin investors have ended their net profit-taking spree recently, a potential sign that a price reversal could occur soon.<\/p>\n

Bitcoin Daily Realized Profit Loss Ratio Has Dipped Below 1 Recently<\/h2>\n

As explained by CryptoQuant author Axel Adler Jr in a new post<\/a> on X, realized losses have started to exceed profits recently. The on-chain metric of interest here is the “Daily Realized Profit Loss Ratio,” which, as its name suggests, tells us about how the Bitcoin investors’ profits compare against the losses.<\/p>\n

The metric works by going through the transaction history of each coin sold to see what price it was moved at before this. If this previous selling price for any coin was less than the current spot price, then that particular coin is being moved at a profit.<\/p>\n

Related Reading: When To Be Bearish On Bitcoin? On-Chain Analyst Answers<\/a><\/div>\n

Similarly, sales of coins of the opposite type lead to loss realization. The indicator adds these profits and losses for the entire market and takes their ratio to produce its value.<\/p>\n

When the indicator is above 1, the investors realize more profits than losses with their selling. On the other hand, this threshold implies the dominance of loss-taking in the market.<\/p>\n

Now, here is a chart that shows the trend in the Bitcoin Daily Realized Profit Loss Ratio over the past few years:<\/p>\n

\"Bitcoin
The value of the metric appears to have been under the 1 mark in recent days | Source: @AxelAdlerJr on X<\/a><\/figcaption><\/figure>\n

As displayed in the above graph, the Bitcoin Daily Realized Profit Loss Ratio has mostly been above 1 for the past year. Not just that, the indicator has been significantly above the mark for a lot of this time, which suggests profit realization has been quite notable.<\/p>\n

The reason behind this is the appreciation the BTC price has enjoyed during this period. From the chart, it’s visible that peak profit-taking coincided with the all-time high (ATH)<\/a> in March, as would be expected.<\/p>\n

Interestingly, profit-taking still massively outweighed the loss-taking in the months that followed the ATH, where BTC price consolidated inside a range. It would appear that this appetite for taking profits has run out recently, a potential result of the sideways trajectory showing no signs of ending.<\/p>\n

The ratio has now started to flip the other way, with losses taking center stage. The analyst has noted that such a shift towards loss-taking generally occurs at the end of consolidation<\/a> periods.<\/p>\n

Related Reading: Bitcoin \u201cStill In A Bull Market,\u201d Quant Says\u2014Here\u2019s Why<\/a><\/div>\n

So far, the lowest the ratio has gone is 0.66, which is not too low compared to past loss-taking events. Thus, the capitulation<\/a> may deepen before Bitcoin can start a fresh rally.<\/p>\n

BTC Price<\/h2>\n

Bitcoin has recently continued to be locked in a sideways trajectory as its price still trades around $58,400.<\/p>\n

\"Bitcoin
Looks like the price of the coin has been flat recently | Source: BTCUSD on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

On-chain data shows that Bitcoin investors have ended their net profit-taking spree recently, a potential sign that a price reversal could occur soon. Bitcoin Daily Realized Profit Loss Ratio Has Dipped Below 1 Recently As explained by CryptoQuant author Axel Adler Jr in a new post on X, realized losses have started to exceed profits recently. The on-chain metric of interest here is the “Daily Realized Profit Loss Ratio,” which, as its name suggests, tells us about how the Bitcoin investors’ profits compare against the losses. The metric works by going through the transaction history of each coin sold to see what price it was moved at before this. If this previous selling price for any coin was less than the current spot price, then that particular coin is being moved at a profit. Related Reading: When To Be Bearish On Bitcoin? On-Chain Analyst Answers Similarly, sales of coins of the opposite type lead to loss realization. The indicator adds these profits and losses for the entire market and takes their ratio to produce its value. When the indicator is above 1, the investors realize more profits than losses with their selling. On the other hand, this threshold implies the dominance of loss-taking in the market. Now, here is a chart that shows the trend in the Bitcoin Daily Realized Profit Loss Ratio over the past few years: As displayed in the above graph, the Bitcoin Daily Realized Profit Loss Ratio has mostly been above 1 for the past year. Not just that, the indicator has been significantly above the mark for a lot of this time, which suggests profit realization has been quite notable. The reason behind this is the appreciation the BTC price has enjoyed during this period. From the chart, it’s visible that peak profit-taking coincided with the all-time high (ATH) in March, as would be expected. Interestingly, profit-taking still massively outweighed the loss-taking in the months that followed the ATH, where BTC price consolidated inside a range. It would appear that this appetite for taking profits has run out recently, a potential result of the sideways trajectory showing no signs of ending. The ratio has now started to flip the other way, with losses taking center stage. The analyst has noted that such a shift towards loss-taking generally occurs at the end of consolidation periods. Related Reading: Bitcoin \u201cStill In A Bull Market,\u201d Quant Says\u2014Here\u2019s Why So far, the lowest the ratio has gone is 0.66, which is not too low compared to past loss-taking events. Thus, the capitulation may deepen before Bitcoin can start a fresh rally. BTC Price Bitcoin has recently continued to be locked in a sideways trajectory as its price still trades around $58,400. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":636476,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,92911,88087,6481,89956,92910,1119,1144],"class_list":["post-636452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-daily-realized-profit-loss","tag-bitcoin-loss-taking","tag-bitcoin-rally","tag-bitcoin-reversal","tag-bitcoin-turnaround","tag-btc","tag-btcusd"],"acf":[],"yoast_head":"\nBitcoin Holders Now Doing Loss-Taking: Sign That A Turnaround Is Near?<\/title>\n<meta name=\"description\" content=\"Data shows the Bitcoin investors have ended their net profit-taking spree recently, a potential sign that a price reversal could be soon.\" 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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/uniquehot.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin Holders Now Doing Loss-Taking: Sign That A Turnaround Is Near?","url":"http:\/\/uniquehot.com\/bitcoin-news\/bitcoin-holders-loss-taking-sign-turnaround-near\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/uniquehot.com\/bitcoin-news\/bitcoin-holders-loss-taking-sign-turnaround-near\/"},"thumbnailUrl":"https:\/\/uniquehot.com\/wp-content\/uploads\/2024\/08\/btc_69f731.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/uniquehot.com\/wp-content\/uploads\/2024\/08\/btc_69f731.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/uniquehot.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin daily realized profit loss","bitcoin loss taking","bitcoin rally","bitcoin reversal","bitcoin turnaround","btc","btcusd"],"dateCreated":"2024-08-20T03:30:25Z","datePublished":"2024-08-20T03:30:25Z","dateModified":"2024-08-20T03:30:25Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin Holders Now Doing Loss-Taking: Sign That A Turnaround Is Near?\",\"url\":\"http:\\\/\\\/uniquehot.com\\\/bitcoin-news\\\/bitcoin-holders-loss-taking-sign-turnaround-near\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/uniquehot.com\\\/bitcoin-news\\\/bitcoin-holders-loss-taking-sign-turnaround-near\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/uniquehot.com\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/btc_69f731.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/uniquehot.com\\\/wp-content\\\/uploads\\\/2024\\\/08\\\/btc_69f731.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/uniquehot.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin daily realized profit loss\",\"bitcoin loss taking\",\"bitcoin rally\",\"bitcoin reversal\",\"bitcoin turnaround\",\"btc\",\"btcusd\"],\"dateCreated\":\"2024-08-20T03:30:25Z\",\"datePublished\":\"2024-08-20T03:30:25Z\",\"dateModified\":\"2024-08-20T03:30:25Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/uniquehot.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/uniquehot.com\/wp-content\/uploads\/2024\/08\/btc_69f731.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/posts\/636452","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/comments?post=636452"}],"version-history":[{"count":0,"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/posts\/636452\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/media\/636476"}],"wp:attachment":[{"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/media?parent=636452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/categories?post=636452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uniquehot.com\/wp-json\/wp\/v2\/tags?post=636452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}