Bitcoin Profit-Taking Hits 110K, Price Correction Looms
Bitcoin investors have been selling off their coins in large quantities after a significant price surge in August. According to CryptoQuant data, around 110,000 BTC were sold off by holders seeking profits between late August and early September. This sudden profit-taking has historically been followed by a substantial price correction for the underlying asset.
The price of Bitcoin skyrocketed from under $65,000 on August 19 to almost $80,000 in just two days. On August 21, holders realized net profits of 23,000 BTC, making it the largest single-day profit realization this year. However, the asset's price dipped after the massive jump and then recovered before being rejected following the US jobs report.
CryptoQuant analysts warned that if profit-taking continues at this pace, Bitcoin's price could be primed for another correction. The analysts also pointed out that spot demand has weakened, with a 43,000-unit expansion in apparent spot demand losing momentum and contracting. US investors' demand has also weakened, with the Coinbase Premium returning to slightly negative territory.