Profit-Taking Rises While Metaplanet Adds 1,088 BTC to Its Growing Treasury

While Bitcoin remains close to its recent peaks, it’s becoming clear that investor sentiment is starting to shift.

Data shows that the $BTC market has become less favorable for momentum buyers, with a much sharper uptick in profit-taking. The late-stage telling may be that both momentum and reversal signals are now being sold by indicators. All of this is starkly contrasted by the first-time buying that is still happening. To know for sure what’s transpiring, though, we need to play the waiting game. But $BTC looks solid either way.

At the same time, Bitcoin’s appeal to the corporate world keeps growing. The Japanese company Metaplanet, one of Asia’s most enthusiastic corporate Bitcoin buyers, has just added another 1,088 BTC to its balance sheet, investing $114 million to do so at an average price of $108,633. With this latest acquisition, the company now holds a total of 8,888 BTC, valued at approximately $932 million, with a cost basis of $96,297 per coin.

Bitcoin investor cohort data suggests a market that may be on the brink of a pivot.

On the other hand, the RSI for profit-takers rose to near 77, implying that an increasing number of investors seem to be securing profits after a pronounced rally. This kind of action has historically coincided with local market tops. It also serves as a potential indicator for the traders who watch this sort of thing to signal that we are entering or are about to enter a consolidation phase.

Falling momentum and rising profit-taking create a delicate balance. They don’t guarantee a downturn, but they do raise the likelihood of price stabilization or a correction if new demand doesn’t emerge to absorb the selling pressure.

Even though the recent surge in buying might be fizzling out, the data does present a very optimistic sign—first-time buyers are entering the market in droves. Over the past 30 days, the RSI for first-time BTC buyers has not dipped below 90 and is more likely to trend upwards than downwards, indicating that new market entrants are buying the market.

This group plays a crucial role in propelling sustainable growth. In contrast to short-term traders, first-time buyers often indicate a longer-term commitment, supplying fresh capital that undergirds price stability and the ongoing march of Bitcoin’s market expansion. Their activity could very well be the tipping point that determines whether Bitcoin keeps climbing or enters a kind of sideways drift.

The upcoming weeks will be key to assessing whether this latest group can counter the current swell of profit-taking and lack of momentum buyers. If anything, an influx of long-term holders seems likely to re-ignite the upward movement. If enthusiasm continues to wane, however, we’re likely looking at some short-term consolidation.

Despite the retail landscape in the cryptocurrency market shifting, institutional confidence in Bitcoin remains rock solid. One of the only publicly listed companies in Japan actively building a Bitcoin treasury, Metaplanet, has just made another big purchase. This time, it bought 1,088 BTC for $114 million. That puts its total haul from recent acquisitions at over $180 million. And it means the company’s yushakuwari (a term for Bitcoin treasury in Japan) is up around 6,888 Bitcoins.

This action totals Metaplanet’s holdings to 8,888 BTC, which are worth with the current prices about $932 million. The average acquisition price for the BTC is now $96,297. That means the company has likely substantial unrealized gains because the current price is around $43,000 (with it being about $53,000 as the high about 2 months ago). Metaplanet’s BTC strategy seems to be very similar to the one MicroStrategy uses.

Not merely symbolic, Metaplanet’s steady accumulation of Bitcoin is a representation of Japan’s increasingly significant role in the corporate world of Bitcoin. As the warm and welcoming glow of Bitcoin and other digital assets starts to cast some rays of sunshine on traditional finance in Japan, could it have some influence on other firms across Asia? Wouldn’t it be nice to think so?

Although some signs suggested profit-taking was increasing and momentum was fading, this was not necessarily reflected in the market foundation. This market foundation seemed resilient, with metropolitans continuing to staunchly buy and with the first-time buyers’ market holding strong.

As Bitcoin sails through this vital period, the spotlight from the investment community is likely to remain on cohort rotation, whale moves, and corporate actions. This may not be the next leg up for Bitcoin, but it is certainly a continuation of its narrative.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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