The on-chain analytics platform Glassnode has revealed that most short-term Bitcoin holders are currently in profit. This development raises the possibility that this leading cryptocurrency may face another sell-off from this group of holders, who may not be able to hold during this period of price volatility.

70% Of Short-Term Bitcoin Holders Are In Profit

A report from Glassnode shows that 70% of the short-term Bitcoin supply held by holders are in profit despite the recent price drop. The platform notes that the deeper the correction, the more likely their supply will be at a loss, a development that could affect the confidence of these holders.

The report also added that, considering the fact that Bitcoin is currently trading within a relatively narrow price gap, selling pressure may come from profit-taking in the late stage if this occurs. Currently, the selling pressure from these short-term Bitcoin holders seems relatively low.

Glassnode pointed out the percentage of trading volume coming from short-term Bitcoin holders who are in profit to assess the impact of this correction phase on investors. This metric measures the number of newly purchased coins being sold for profit. The platform notes that the percentage of short-term Bitcoin holders who have taken profits has decreased, currently at 45%, a neutral level.

Glassnode observes that this indicates the market is in a relatively balanced position, alleviating concerns about potential sell-offs from short-term Bitcoin holders. At the same time, the platform also mentions Bitcoin ETF funds, which are also creating selling pressure for this leading cryptocurrency. These ETF funds recorded a net outflow of 1,500 BTC on August 5, the largest selling pressure since April 2025.

The report notes that capital outflows from Bitcoin ETF funds have been relatively brief, with only a few instances of prolonged daily capital outflows creating continuous selling pressure. Glassnode believes that monitoring ETF capital flows will help determine whether this latest outflow is merely a repetition of a short-term trend or a shift in investor sentiment.

$116,900 Is The Resistance Level That BTC Needs To Overcome

Glassnode stated that the price of Bitcoin needs to decisively surpass $116,900 to gain momentum for the next price surge. This price level serves as the cost basis for those who bought BTC locally in the past month. The platform claims that a sustained price move above this level would signal that the demand side is regaining control.

Furthermore, this also provides initial confirmation that the price of Bitcoin has found reliable support and may continue to rise. On the other hand, if BTC maintains below this level for a longer period, Glassnode notes that this will increase the risk of a deeper correction. Bitcoin could drop towards the lower limit of the price gap near $110,000.