The post Bitcoin Avg Profitability Index Hits 200% – Active Profit-Taking On The Horizon? appeared on BitcoinEthereumNews.com.

Following the Federal Reserve’s decision to cut interest rates in September, Bitcoin has been volatile yet predominantly bullish. Analysts and investors are now waiting patiently for the next leg up, as BTC recently stopped at the $69,400 mark and is finding strong support around $66,000. This level is key, as it could determine Bitcoin’s next price movement. Key data from CryptoQuant reveals that the Bitcoin Average Profitability Index is currently at 202%, indicating that the price is roughly twice the realized price. This metric provides confidence to investors and traders who expect Bitcoin to continue rising. With profitability still well below levels that typically trigger mass profit-taking, it suggests more room for BTC to grow before significant selling pressure emerges.  Many believe the coming weeks will be crucial, as Bitcoin’s strength above $66,000 could pave the way for a breakout above $70,000, while failure to hold this support might result in a deeper retrace. Bitcoin Investors Waiting For A Rally CryptoQuant data shared by on-chain analyst Axel Adler reveals insights into Bitcoin’s current market conditions but may not dictate immediate price action in the coming days. As investors remain hopeful that BTC will continue rising and challenge all-time highs, Adler highlighted the Bitcoin Average Profitability Index on X.  Bitcoin Average Profitability Index at 202% | Source: Axel Adler on X This index serves as a crucial indicator of market sentiment, suggesting that when it surpasses 300%, it often prompts investors to start actively taking profits. The index sits at 202%, indicating that we may be halfway to that critical threshold. This suggests that while there is still significant room for price appreciation, we are approaching a point where profit-taking may become prevalent. Once the Average Profitability Index hits the 300% mark, selling pressure could intensify enough to trigger a correction…

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Filed under: News - @ October 24, 2024 1:25 am