Bitcoin’s Golden Cross Triggers Massive Profit-Taking and Market Volatility

The so-called “Golden Cross” is a significant technical signal in the crypto market. It occurs when the 50-day moving average (SMA) crosses the 200-day moving average from below to above. On May 22nd, Bitcoin confirmed this exact signal. Historically, a Golden Cross indicates a sustained uptrend and bullish market sentiment.

Record profit taking after the Golden Cross

Since the appearance of the Golden Cross, profit-taking activity in Bitcoin has increased significantly. On-chain data from Glassnode shows that realized profits per hour have exceeded the $500 million mark several times. This indicates that many investors are actively locking in their profits rather than speculating on further price increases.

What does the blockchain say about investor behavior?

The so-called “entity-adjusted realized profits” measure how much profit is actually generated by moving coins on the blockchain. Transactions between individual wallets are filtered out, providing a more realistic picture. Since the end of May, the intensity of this profit-taking has reached a level last seen in February.

Further indicators confirm the development

In addition to realized profits, the “Spent Output Profit Ratio” (SOPR) also provides valuable insights. The SOPR measures how profitable the recently traded coins were. An increase in this value indicates that more and more investors are selling at a profit.

The average profit per coin was recently +16% – a remarkable figure. Remarkably, less than 8% of traditional investors continue to hold their coins, indicating a broad wave of profit-taking.

Bircoin Golden Cross: Impact on the market and possible developments

Many investors are taking advantage of the current high to take profits. This can lead to increased volatility or even price corrections in the short term. For you as an investor, this means it’s worth paying close attention to market movements and on-chain data to identify good entry or exit points.

Conclusion: Stay vigilant when investing in Bitcoin

The Golden Cross has sparked tremendous interest in profit-taking. Blockchain data demonstrates how quickly market sentiment can change. For you, this means staying informed regularly to maximize opportunities and minimize risks.

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(Featured image by Jakub Zerdzicki via Pexels)

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