Key takeaways:
Short-term Bitcoin holders realized $11.6 billion in profit over the past 30 days, suggesting a potential pause or local top in the market.
Technical indicators show cooling momentum as retail investor sentiment falls to a 90-day low and liquidity data points to price volatility.
Bitcoin (BTC) price recently hit a new all-time high of $111,800, but the bullish momentum may slow down as onchain data from Glassnode reveals significant profit-taking by short-term holders (STHs), potentially signaling a market “breather.”
Glassnode analysis shows that STHs, often considered traders rather than long-term investors, have realized a staggering $11.6 billion in profits over the last 30 days. This follows a sharp rebound in Bitcoin’s price, pushing past the STH cost-basis of $93,000. The profit-taking peaked at $747 million daily, a rapid increase from the $1.2 billion realized in the last 30-day period, highlighting a shift in new investor sentiment.
Bitcoin entity-adjusted short-term holder. Source: Glassnode
The STH Realized Profit/Loss Ratio has spiked, with profits now significantly outweighing losses, and only 8% of trading days have seen this ratio at a higher level.
This level of profit-taking is typical during bullish trends but often precedes local market tops. Excessive profit-taking can overwhelm new demand, creating overhead supply resistance and halt Bitcoin’s upward trajectory.
Crypto analyst Axel Adler Jr noted that Bitcoin’s 30-day price momentum has already slowed by 38%, currently sitting at 19%. Adler described it as a “technical cooldown” after the recent peak. The Bitcoin researcher suggested the market needs a “breather” before potentially resuming its rally.
Similarly, analysis from Hyblock Capital advised caution as the previous three months outlined Bitcoin consistently targeting short liquidity zones above current prices, driving its recent highs.
However, retail sentiment is at a 90-day low, with only 31.59% of retail accounts holding long positions. Meanwhile, open interest is at a 90-day high, and combined order books sit in the 91st percentile, signaling high liquidity and potential volatility.
Bitcoin aggregate order book and open interest. Source: Hyblock / X
Related: US Bitcoin ETFs near record month after $1.5B inflows in 2 days
Bitcoin open interest dropped by $1.2 billion as BTC fell under $110,000
Bitcoin experienced a sharp decline, dropping to $108,000 from $111,300 before the New York trading session opened on May 23. US President Donald Trump’s announcement of a 50% tariff on European Union imports, effective June 1, 2025, triggered the price dump, which sparked global market uncertainty.
The price plunge resulted in a significant $1.2 billion open interest reduction in Bitcoin positions, signaling a wave of deleveraging as traders reduced futures exposure.
🚨LATEST: #Bitcoin open interest exhibits a $1.2 billion position flush after $BTC drops below $110,000. pic.twitter.com/0ee46BiHGD
— Cointelegraph Markets & Research (@CointelegraphMT) May 23, 2025
Despite the initial sell-off, Bitcoin rebounded above $109,000, with speculators dismissing the sell-off period. Regarding the current market trend, crypto trader Honey pointed out that any corrections could be potential buying opportunities. The trader said,
“As expected we pumped and now that the golden cross has happened on BTC, we generally see a market-wide pullback so I’d be cautious here. Dips are for buying.”
Related: Bitcoin price drops 4% as Trump EU tariff talk liquidates over $300M
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.
