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Short-Term Bitcoin Holders Cash In as Bull Cycle Builds
- Short-term Bitcoin holders have started cashing in on profits as a new bull cycle seems to be building.
- Recent data from Glassnode shows a shift in profit-taking behavior, with wallets holding BTC for less than 12 months accounting for 83% of realized gains.
- The 6–12 month cohort alone realized $904 million in daily profit, marking the second-highest profit spike of the year.
- The Index Bitcoin Cycle Indicators (IBCI) suggests a critical juncture, with the indicator correcting to near the 50% zone from a peak above 75%, indicating a transitional phase.
- Historical patterns indicate that the current equilibrium phase could precede renewed bullish momentum.
- The IBCI typically signals the end of bull cycles only when consistently reaching 100%, which is not the case currently.
- Bitcoin's on-chain fundamentals are strengthening, and the market sentiment points towards a cooling phase rather than a collapse.
- Price action aligning with the on-chain narrative could confirm the next major leg of the bull cycle.
- Bitcoin is still close to its all-time highs, suggesting the market might be gearing up for another upward movement.
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