Despite Bitcoin's robust performance, 2024's profit-taking intensity fails to match the 2021 bull run's fervor.
Net realized profit-taking for Bitcoin has witnessed an unbroken streak of 128 days, starting from Oct. 20, 2023, until Feb. 25, 2024. This period saw Bitcoin's price catapult from below $30,000 to $50,000, providing lucrative opportunities for investors.
Defined by Glassnode, the net realized profit/loss represents the cumulative profit or loss from all coin transactions. It is calculated by deducting the realized loss from the realized profit.
This is not the first time such a trend has been noted. Looking back over the past five years, we find an even more extended period of consecutive net profit-taking: a staggering 155-day run from September 2020 to Feb. 26, 2021, during the significant bull run of 2021.
Interestingly, the frequency of profit-taking has dipped considerably in recent weeks as Bitcoin's price has stabilized above $50,000. Notably, when Bitcoin's price crossed significant milestones at $40,000 and $50,000, we noticed an intense surge in profit taking.
However, a contrast emerges when comparing the current trend with the 2021 bull run. The 2021 bull run witnessed multiple days where the profit-taking figures reached staggering heights of over $4 to $5 billion. In contrast, the highest profit-taking in 2024 peaked at $3.2 billion in a single day. This indicates a notably subdued level of profit-taking activities in the current year when compared to the intense trading during the 2021 bull run.
