Glassnode: Bitcoin short-term holders start taking profits, but there is still room for upward movement

BlockBeats News: On May 16th, Glassnode announced that short-term holders of Bitcoin have started taking profits. The realized profit of short-term holders (STH Realized Profit) has soared to around 3 standard deviations above its 90 day average, reflecting a significant increase in profit taking activity. However, in previous cycles, especially during periods when prices are climbing towards historical highs (ATH), this indicator often rises to positive 5 standard deviations or more. This indicates that to overwhelm the continuously flowing buying demand, stronger profit taking pressure is usually required. Bitcoin's rebound to near historical highs is mainly driven by the spot market, benefiting from strong on chain holdings and off chain capital inflows. The demand mainly comes from spot ETFs and major spot trading platforms like Coinbase. A key cost support zone has formed around $95000, coupled with reduced selling pressure, further consolidating the strength of this upward trend. However, the derivatives market seems to be still catching up, with the volume of open contracts and funding rates not fully keeping up with the upward trend of the spot market. The holdings in the options market show a cautious but optimistic attitude, while there are currently almost no signs of excessive long leverage in the futures market.