Over 75% of Bitcoin short-term holders in profit as BTC breaches $67K

Three-quarters of short-term Bitcoin holders are now profitable, potentially giving Bitcoin’s price additional upward momentum.

Over 75% of short-term Bitcoin (BTC) holders (STHs) are now in profit, thanks to Bitcoin’s recent rally, according to a July 24 report by Glassnode.

“This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit. This can be seen within the STH-MVRV metric, which has now recovered above the break-even level of 1.0.”

Bitcoin’s price rally offers significant relief for short-term holders, the cohort that saw over 90% of its supply in the red during late July.

The short-term holder cohort is often used as a proxy for investors looking to gauge Bitcoin demand and recent buying patterns.

Bitcoin settles above key support level despite $3.9 billion futures expiry

The Bitcoin price managed to settle above a key support level, despite a $3.9 billion BTC futures expiry,that threatened to take BTC to the $63,000 mark.

Following the rally, Bitcoin needs to hold above the current $65,000 mark, which acts as a key support, according to popular crypto analyst Rekt Capital, who wrote in a July 26 X post:

“The retest was successful. Bitcoin has confirmed $65,000 as support. Price will now continue to occupy the $65000-$71500 region (red).”

BTC faces significant resistance at $68,000

Despite the bullish price recovery, Bitcoin faces significant resistance at the psychological $68,000 mark.

Nearly $700 million worth of cumulative leveraged short positions stand to be liquidated across all exchanges, if Bitcoin manages to rise above the $68,000 mark, according to CoinGlass data.

Short liquidations would surpass $1 billion above the $68,500 mark, but reaching that level would depend on the inflows from the US spot Bitcoin exchange-traded funds (ETFs).

Inflows into the US spot Bitcoin ETFs have been slowing down since July 23, reaching $31.1 million in cumulative inflows on July 25, according to Farside Investors data.