in

Bitcoin Cracks $27,000, Keeps Pumped! Is BTC even going over $30k now?

Bitcoin Cracks $27,000, Keeps Pumped!  Is BTC even going over $30k now?

Click Here To See The Best Crypto Presales That Could Increase 10X This Year!

On-chain data shows that Bitcoin’s profit-taking has skyrocketed after the cryptocurrency’s price briefly surpassed $27,000.

Bitcoin: 2.4 times as much profit and loss

According to data from the Santiment chain analysis firm, BTC has not seen this level of profit since December 2020. The relevant indicator is the ratio of the daily volume of on-chain transactions in profit to loss.” As the name suggests, it measures the ratio of the number of winning bitcoin transactions to the number of losing transactions.

The metric provides insight into whether or not more profits are currently being made than losses are being made in the market. The indicator has a positive value when the amount of profit is higher. Otherwise it is negative.

The indicator works by going through the chain history of each coin sold/transferred to see the price it was last transferred at. If the previous selling price for a coin was below the current BTC value, it was replaced by a profit – so your transaction is counted towards profit volume. If the last price is higher than the current value, selling the coin adds to the loss amount.

Totally inflated profit/loss ratio

The chart below shows the evolution of the daily on-chain transaction volume ratio between profit and loss for Bitcoin and Ethereum over the past year:

Bitcoin and Ethereum Profit to Loss Ratio: The values ​​of both metrics seem to be quite high in the last few days | Source: Santiment on Twitter

The chart above shows that the Bitcoin P/L volume ratio has been completely inflated over the past few days. With the recent price rise above $27,000, the indicator is seeing an even stronger surge.

During this rise, the indicator reached a value of around 1.4. This means that the transaction volume when taking profits is about 2.4 times higher than when taking losses. This indicator value is the highest since December 2020, when the 2021 bull run was in its early stages.

This high profit taking number indicates that investors are afraid of falling prices at the moment and therefore rush to take profit when the price exceeded $27,000. Selling pressure from this profit taking was likely the reason for the temporary pullback to $26,000.

The chart shows that Ethereum’s profit margin has also increased significantly over the past few days. Still, the indicator hit the cryptocurrency’s highest reading since mid-2023, just a little further behind Bitcoin.

Should you buy Bitcoin now?

Many traders are buying Bitcoin today. If you are interested in coins that are predicted to have an optimized reward ratio, you could take a look at Love Hate Inu (LHINU): the betting meme coin allows you to earn cryptocurrencies by voting on all kinds of topics! In the current presale, 1 LHINU currently costs 0.00009 USDT, in 7 days the price will increase to 0.00010 USDT.

Here for the Love Hate Inu Presale

Text credit: Bitcoinist

Last updated on March 18, 2023

Brand new LOVE HATE INU Meme Coin with Sector Vote for pre-sale

  • Decide for yourself: Vote now and earn!
  • Real-time betting with voting rewards
  • Get $LHINU tokens by voting

FightOut Presale: Buy now $FGHT

  • Move2Earn cryptocurrency with a lot of potential in presale
  • Blockchain based system with Move2Earn Rewards
  • Fightout rewards the fitness activities of its users

sustainable cryptocurrency with e-mobility rewards

  • Eco-friendly crypto project in advance
  • CO2 certificates for e-car owners as a reward
  • It helps democratize carbon credits

Don’t miss out: RobotEra is still available for free!

  • A trendy metaverse project based on NFT
  • Features sandbox style play and earnings
  • Get free now through the presale

Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.

coinbase-ethereum

Should we expect Ethereum mass withdrawals?

Bitcoin (BTC) and Ether (ETH) looking for new bullish targets

Bitcoin (BTC) and Ether (ETH) looking for new bullish targets