The Bitcoin market has experienced dramatic price fluctuations recently. After rising to a record high of $106,800 for three consecutive days, the BTC price quickly fell back to $105,200, triggering widespread discussion in the market about short-term trends. According to XBIT data and analysis, this pullback was caused by a large number of short-term holders taking profits, with a single-day profit of up to $1.5 billion, which is one of the most significant profit-taking waves in the recent rally.

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According to the node data of Bijie.com, there was an unusually active sell-off in the Bitcoin market on June 3. On that day, there were sell orders worth $500 million every hour, with a cumulative profit of $1.5 billion. This phenomenon shows that as the price of BTC approaches its all-time high, many investors choose to lock in their profits. The average profit per coin reached +16%, indicating that most sellers remained profitable after cashing out at high prices. XBIT (DEX Exchange) analysts said: It is worth noting that in less than 8% of trading sessions, investors made profits exceeding the current level, suggesting that the market is shifting from "chasing the rise" to "profit-taking" stage.

XBIT (DEX Exchange) report shows that the sell-off was mainly driven by short-term holders (STH). STH's "realized profit and loss ratio" (SOPR) soared from 0.99 to 1.04, reflecting that short-term investors quickly closed their positions after BTC broke through $106,000. In addition, as the price of Bitcoin fell back, the gap between STH's average cost price and the current market price narrowed, and some new investors even faced floating losses. This compression of profit margins has prompted more short-term holders to choose to exit, further exacerbating market selling pressure.

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If the current selling trend continues, technical analysis shows that BTC may fall below the key support level of $104,000 and drop to $102,683. In the short term, high selling pressure may cause the stock-to-flow ratio of Bitcoin to decline, thus exerting downward pressure on the price. However, this pullback may also accumulate momentum for subsequent gains. XBIT (DEX Exchange) analysts pointed out that Bitcoin often fluctuates sharply after breaking through the historical high, but the long-term trend still depends on factors such as market demand, institutional capital inflows and the macroeconomic environment.

This selling wave reflects the market's cautious attitude towards highs, but it also reminds investors to distinguish between short-term adjustments and long-term trends. For holders, if the price falls below $104,000, they can pay attention to the support strength near $102,700; while potential buyers need to wait for clearer technical signals or market sentiment to stabilize before entering the market. Overall, the sharp volatility of the Bitcoin market once again highlights the importance of risk management, especially when the price approaches the historical peak.

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While traditional centralized exchanges (CEX) have been receiving attention due to liquidity concentration, regulatory risks, and other issues, XBIT is based on blockchain technology, does not require KYC verification, and users have full control over their assets, avoiding the risk of fund freezes due to regulatory policy changes. Transactions are automatically executed through smart contracts, without relying on the credit endorsement of the exchange; anyone can trade freely on the chain, unaffected by government or institutional geographic blockades. 24/7 global trading: not restricted by exchange business hours or regions, suitable for the high volatility market of cryptocurrencies.

Company: xbit limited

Contact：Rudy Divin

Email: xbitdex@gmail.com

Website: http://www.xbitdex.com

Address: 32 Fuk Chuen Street, Tai Kok Tsui, Hong Kong

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency trading involves significant risk; always conduct your own research.