Key Points:
Bitcoin profit-taking is currently in full swing, but according to research analysis from Santiment, this may actually help maintain the bullish trend.
The time Bitcoin spends in wallets is getting shorter, but the market has not been negatively affected by "short-term speculation."
A whale who was unable to take profits in time is James Wynn from Hyperliquid, whose position was liquidated for $99 million.
Despite holders taking profits, new research indicates that Bitcoin's upward momentum should continue.
In its latest bi-weekly report released on May 29, Santiment noted that even if BTC/USD drops by 10%, they remain optimistic about the market outlook.
Santiment pointed out that Bitcoin profit-taking is not an inevitable signal that the bull market is about to end.
By analyzing the Mean Dollar Invested Age (MDIA) metric—which measures the length of time Bitcoin remains unmoved in wallets—the research shows that since mid-April, the supply of coins has started to become more active.
"In most bull market cycles, a decline in MDIA (indicating a decrease in the average age of holding wallets) is an important validation signal that the bull market momentum will continue," the report explained. "From a technical perspective, the downward trend indicates that old coins are re-entering circulation, usage is increasing, and the asset network is expanding and thriving. Since mid-April, when the initial tariff announcement tensions began to ease, Bitcoin's MDIA has been steadily declining."
Over the past six weeks, the average holding time of Bitcoin in wallets has moderately decreased from 443 days to 426 days.
While this indicates that holders are seeking to lock in profits, Santiment believes this behavior is "necessary to maintain the momentum of the rise."
"This further supports the argument that the market is in an active phase, rather than being driven solely by short-term speculation," the report added.
The BTC price fell below $105,000 after the daily close on May 29, a 10% pullback from the latest historical high.
Nevertheless, market sentiment remains clearly optimistic, with consensus suggesting this is a "healthy" support level test before the upward trend continues.
Bitcoin - imagine being bearish on this bullish retest pic.twitter.com/2cyKvmhz8n
Other analysts noted that there continues to be significant amounts of Bitcoin leaving exchanges, including a transfer of 7,000 Bitcoins on May 30, which trader Merlijn believes is part of a single whale entity operation.
Santiment also commented on the situation of a specific whale, James Wynn from the Hyperliquid platform, whose Bitcoin long position was liquidated for $99 million when the price fell below the $105,000 mark.
"When major long positions are liquidated, prices typically experience a sharp decline, as large funds no longer support the price level," the agency warned before the event occurred.
Related: 5 Signs Indicating Bitcoin (BTC) Price "Has Further Upside Potential"
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) Bull Market 'Best Validator' Emerges: James Wynn's Million Dollar Loss Case”
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