Bitcoin has fallen below $27000 as holders determine their biggest profit since November 2021 in the short term.

In the short term, Bitcoin holders are aware of the recent surge in profits.

Based on the chain analysis of corporate Glassnode information, holders have recently made a profit of about $292 million in the short term. The relevant indicator here is "realized profit", which refers to the total amount of profits locked in by all Bitcoin Internet investors at this stage (in US dollars).

This indicator works by accessing the chain history of each coin that has been sold to check its last transaction price. If the previous market price of all coins is less than the current price, then it is selling at a profit.

Subsequently, the profit target value has been realized to sum the profit quota rather than the use value, and then repeat the whole process of all the transactions in the BTC block chain.

This indicator value can also be used in specific sales market sections, such as investor groups. The entire Bitcoin sector can be divided into two main investor groups: short-term holders (STH) or long-term holders (LTHS).

Here, the group of people involved is the former, including all investors who own coins less than 155 days ago. Naturally, if the holder of the coin has held the coin for more than this time limit, it belongs to the scope of long-term monetary policy.

The chart below shows that bitcoin STH has made a profit in recent years.

The profit indicator commonly used in the bitcoin STH is the "physical line adjustment" index, which means that transactions between wallets on the same physical line have been excluded from the data information (a physical line can be either a single investor or a group of holders).

From the data chart, it is very obvious that this indicator has been at a very low level during the bear market, which is not unreasonable. As the market price within 155 days is higher or close to the current price, it is not easy for STH to have a lot of opportunities to get all the huge profits.

But that trend changed after the rebound ended in January, as STH, which bought cheaply in a bear market, suddenly made some big profits.

Earlier that month, when the price of bitcoin fell below the $20, 000 mark, the value of this indicator fell significantly, but with a new round of rapid gains in the past week, STH is gradually making some big profits again.

The discount rate for this indicator indicates that STH recently made a profit of about $292 million, the highest value of bitcoin since it hit an all-time high in November 2021.

Such profit-taking by investors is likely to hurt prices, and it seems that the property has already experienced a bullish effect, as bitcoin has fallen below the $27000 price.

Bitcoin price

At the time of writing, Bitcoin traded at about $26800, up 10 per cent last week.