Bitcoin Faces Profit-Taking Risk at $90K: CryptoQuant Analysis
CryptoQuant, an onchain analytics platform, has warned that Bitcoin's price may face a natural pause at $90,000 due to profit-taking. The firm notes that the area around this price level coincides with a significant cluster of on-chain supply and historically signals increased selling pressure.
The CryptoQuant analysis is based on data showing that the realized price of Bitcoin, or the average acquisition price of BTC last moved onchain between one and three months ago, currently sits at $64,300. The upper band for profit-taking sits at $90,300, which is 40% above the realized price.
This comes as Bitcoin traders continue to return to unrealized profits, with CryptoQuant CEO Ki Young Ju stating that future cycle tops and bottoms will be shallower due to institutional ownership. He notes that a shift from retail to institutional ownership has dampened both extremes of market fluctuations.