The post Bitcoin: Why traders should be cautious of the BTC price surge appeared on BitcoinEthereumNews.com.

Bitcoin’s price surpassed $45,000, raising concerns amid imbalanced profit and loss realization trends. Traders profited while mining revenue declined. Bitcoin [BTC] was on an upward trajectory recently as it surpassed the $45,000 barrier. While this may signal optimism for some, there are growing concerns among holders as various market dynamics unfold. Profits and losses In the realm of profit-taking, 2023 has seen Bitcoin realizing profits exceeding $90 billion, yet, somewhat alarmingly, realized losses have reached $53 billion. This stark contrast to 2022, where Bitcoin recorded approximately $200 billion in realized losses, surpassing the realized profit of $106 billion, raises apprehensions about the overall health of BTC’s market. Source: glassnode The significant imbalance between profits and losses could potentially impact Bitcoin negatively, reflecting a scenario where more holders are experiencing losses compared to those enjoying profits. This trend might contribute to a cautious sentiment among investors. Traders, on the other hand, are capitalizing on BTC’s recent surge. With Bitcoin breaking through the $45,000 mark, a prominent trader has made a noteworthy profit of over $1.47 million, as reported by lookonchain’s data. This trader’s successful long position initiated on the 14th of May, involving nine strategic trades, boasts a 100% win rate, accumulating a total profit of approximately $3.6 million. While this showcases profitable opportunities for some, it also highlights the potential for increased market volatility. With the price of $BTC breaking through $45K, this smart trader currently has a profit of over $1.47M! This trader started long $BTC on May 14 and traded 9 times. The win rate is 100% and the total profit is ~$3.6M!https://t.co/MlPmFL54I8 pic.twitter.com/gR0kpNDbNy — Lookonchain (@lookonchain) January 2, 2024 Miners see turbulence Mining behavior plays a pivotal role in Bitcoin’s ecosystem. Daily miner revenue, however, has experienced a decline from $60 million to $47 million. This drop…

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Filed under: News - @ January 2, 2024 10:14 am