Analytics Firm Issues Alert, Says Bitcoin and Ethereum Witnessing Highest Profit-Taking Level in Over a Year

New data from crypto analytics firm Santiment suggests that traders may believe the top two leading digital assets by market cap are about to find their local tops.

According to Santiment, crypto traders are taking profits on Bitcoin (BTC) and Ethereum (ETH) at the highest levels seen since 2021.

“Are crypto markets seeing a top? Traders are behaving like they believe so, taking this opportunity to profit take while given the chance. Bitcoin is seeing its highest profit ratio since Feb 2021. For Ethereum, it’s the highest since Oct 2021.”

Source: Santiment/Twitter

Crypto analytics firm Glassnode also notes that the king crypto has seen a greater volume of profits realized on-chain compared to losses for the first time since June.

“During bear cycles, this tends to act as a psychological level where investors sell at, or near break-even, creating resistance.”

Source: Glassnode/Twitter

Glassnode further says Bitcoin is in the process of retesting a value of 1.0 on the adjusted spent output profit ratio (aSOPR), which reflects the ratio between selling and purchase prices.

It would mark the first retest of that line, which has thus far served as the key resistance level throughout the current bear market, since the collapse of FTX, according to the analytics firm.

“A convincing break above 1.0 for realized [profit/loss] ratio, or aSOPR has historically signaled a cycle regime shift is underway. A successful retest and bounce of aSOPR from 1.0 is often observed near cycle turning points.”

Source: Glassnode/Twitter

BTC is trading at $21,374 at time of writing and is up 0.39% in the past 24 hours while ETH is changing hands for $1,592 and is up 0.22%.

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