Bitcoin opened the week flashing a warning as profit-taking transactions nearly tripled those at a loss.
Analytics firm Santiment reported that Bitcoin closed the weekend with a ratio of 2.95 profitable transactions for every single loss-realizing transaction.
When profits are widespread, investors are more likely to sell and lock in returns. In other words, this pattern has historically been associated with short-term tops and potential price pullbacks.
Santiment noted that the inverse pattern, when loss transactions exceed profitable ones, has functioned as a reliable buy signal.
Bitcoin and altcoins rally on potential 45-day ceasefire
Bitcoin was trading at $69,625 at press time, up about 4% in the last 24 hours, according to TradingView.
The largest crypto asset reclaimed $70,000 in the early hours of Monday amid mounting optimism over US-Iran ceasefire talks.
Major tokens including Ethereum, Solana, XRP, and BNB also rose, pushing the total crypto market cap past $2.5 trillion.
Although the rally marked the top of Bitcoin’s five-week war range, resistance between $71,500 and $81,200 remains, and the market’s next moves depend on the outcome of the ceasefire negotiations.
Source: https://cryptobriefing.com/bitcoin-shows-signs-potential-pullback-profit-ratio-rises/
