Bitcoin Shatters Profit-Taking Streak From 2021 Bull Run

On-chain data shows the recent Bitcoin consecutive profit-taking day streak has now surpassed the longest run from the 2021 bull rally.

Bitcoin Has Now Seen 157 Straight Days Of Net Profit-Taking

As analyst James Van Straten explained as a new post on X, BTC has already surpassed the longest profit-taking spree from the previous bull run during this rally so far.

The relevant indicator here is the “Net Realized Profit/Loss,” which tracks the net amount of profit or loss (in USD) that Bitcoin investors as a whole are realizing with their selling.

This metric works by going through the on-chain history of each sold coin to see what price it was moved at before this. Assuming that the last transaction of the coin was the last point at which it changed hands, the price at its time would have been its cost basis leading up to its latest sale.

The indicator then subtracts this price from the current spot price at which it’s being sold/transferred to calculate the realized profit or loss. Naturally, if this difference is positive, the coin’s sale is contributing to the profit-taking volume, while it being negative implies loss realization.

The Net Realized Profit/Loss sums up all these profits and losses for all the coins being sold at a given moment to output the overall situation in the market.

Now, here is a chart that shows the trend in the 7-day moving average (MA) of this Bitcoin indicator over the past few years:

The 7-day MA value of the metric appears to have been positive in recent months | Source: @ali_charts on X

As displayed in the above graph, the 7-day MA of the Bitcoin Net Realized Profit/Loss has been positive for the past few months. To be more particular, the indicator has held these values for 157 consecutive days now.

When this metric has green values, it means that the market as a whole is participating in a net amount of profit-taking. Similarly, red values imply the dominance of loss-taking.

It would appear that the investors have been taking net profit for 157 straight days now, which is longer than the longest profit-taking streak during the 2021 bull run (155 days).

From the chart, it’s visible that Bitcoin Net Realized Profit/Loss shot especially high as the cryptocurrency’s price explored new all-time highs earlier. The price top so far coincided with the peak of this spike in the indicator, where its 7-day MA value hit $3.6 billion.

This profit-taking level was similar to the largest event observed during the last bull run. According to Straten, this is one of the reasons the asset has seen such a massive selloff.

Despite hitting record levels already, the profit-taking may not be ending anytime soon; however, as the analyst says, “this trend will continue as we are in a bull run and is still relatively mild compared to the 2021 bull run.”

BTC Price

Bullish momentum appears to have returned for Bitcoin as the cryptocurrency has surpassed the $69,000 level after a surge of more than 5% over the past day.