Bitcoin Price Vulnerable to Drop to $23K as Profit-Taking Takes Over

• Bitcoin fails to hold above the $27,500 level suggesting that the gates to a downside to $23,000 are still open.
• Popular trader Crypto Tony said that the move to $23,000 is very much possible.
• According to on-chain analysis, a short-term holder SOPR of more than 1 means that short-term holders are selling their BTC at profits.

Bitcoin Consolidates at $28,000

Bitcoin (BTC) price made a quick surge to over $28,000 after news that US lawmakers will soon pass a proposal to raise the debt ceiling further. However, soon after yesterday’s bounce, Bitcoin price eroded all gains and failed to hold above the $27,500 level suggesting that the gates for a downside towards $23,000 are still open.

Price Vulnerable To Drop

Popular trader Crypto Tony believes that a move towards $23,000 is very much possible. On-chain resource Material Indicators also noted that short positions have started rising again showing short-term holders taking profits and thus increasing probability of price drop.

Short-Term Traders Capitalizing On Profit Taking

On-chain data shows seven-day moving average of the short-term holder’s (STH) spent output profit ratio (SOPR) has once again moved back above 1. A SOPR reading above 1 signals signs of capitulation while a reading under 1 shows that average short-term holders are just holding onto their coins without any intention of selling them in near future. This implies that STHs are selling their BTC at profits thus further increasing chances of BTC price dropping down from current levels.

Debt Ceiling Deal Announcement

The Debt Ceiling deal announcement along with technical support at 200 Week Moving Average had provided some momentum in favour of Bitcoin bulls earlier this week but this was not enough as BTC failed to maintain its position above key resistance levels indicating downward pressure for prices in near future.


In conclusion we can see that Bitcoin is consolidating around $28k currently and price movement is prone towards downside due to whale activity of taking profits from the market which can push BTC prices below key support levels leading towards a further downward trend in upcoming days or weeks depending upon market conditions.