Bitcoin’s recent surge to $71,375 on March 26, nearing its all-time high, was met with increased profit-taking activities, as per insights from Glassnode.

Glassnode’s analysis revealed that as Bitcoin’s price dipped from its peak to $61,200, around 2.0 million Bitcoin transitioned from ‘in-profit’ to ‘in-loss.’ However, with a slight market recovery, approximately 1.0 million coins regained their ‘in-profit’ status due to significant transactions at these higher price levels.

Glassnode highlighted this behavior as one of the more notable ‘supply clusters’ during pullbacks since 2022 lows. The analytics firm noted that a substantial portion of the 2.0 million Bitcoin, with a new cost basis surpassing $61,200, changed hands recently, indicating previous owners capitalizing on profits.

Additionally, Glassnode pointed out variations in the Spent Output Profit Ratio (SOPR) metric, showing an increase in profit-taking in spot markets. Specifically, the Entity-Adjusted SOPR variant approached levels last seen during the 2021 bull market’s peak, reinforcing Glassnode’s profit-taking theory.

During the rally to the $73.2k all-time high, over $2.6 billion in realized profit was secured through on-chain transactions. Long-Term Holders accounted for 40% of this profit-taking, with some investors speculated to be divesting from the Grayscale Bitcoin Trust (GBTC).

On the other hand, short-term holders locked in the remaining $1.56 billion in profits, leveraging inbound liquidity and bullish momentum, reminiscent of past market cycles. Glassnode emphasized that realized profit by both groups has reached levels similar to those during the 2021 bull market peak.

According to historical data, similar patterns have been observed during previous all-time high cycles, indicating a division between those looking to cash out and those expecting further price hikes. This tug-of-war between Bulls and Bears often leads to a temporary market pause near all-time highs, which is considered normal market behavior.

Clive Thompson, a former Swiss banking director and Bitcoin advocate, highlighted the recent shift in ETF inflows turning positive on March 26 after a week of outflows. This positive trend has had a modest impact on the Bitcoin price, which is still below its all-time high of $74,000.

If the inflows to ETFs continue to be positive, Thompson believes that Bitcoin’s price is likely to surpass previous records and climb higher, indicating a positive outlook for the cryptocurrency market. Glassnode’s observations come amidst a recovery phase in the overall cryptocurrency market, with Spot Bitcoin ETFs experiencing significant inflows of $418 million, the largest since March 13.

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