Bitcoin has rallied more than 17% in the past two weeks, displaying resilience amid regulatory headwinds and suggesting the asset could be in the early stages of a bull market. However, on-chain data suggests some traders and whales are taking profits, which may fuel a decline in the coming days. Short-term holders are taking profits, there’s an increase in spending activity in large bitcoin holders (whales), and price valuation momentum is increasing to overvaluation territory. Nevertheless, the firm said bitcoin remains “well inside a bull market,” suggesting any short-term decline is not indicative of a widespread drop.

(By Shaurya Malwa)