Bitcoin Pulls Back from Eight-Month High as Short-Term Holders Take Profits

Bitcoin's recent price surge has reached an eight-month high of $87,251, but the cryptocurrency has since pulled back to $82,939, a nearly 4% drop over seven days. This correction comes as CryptoQuant flags a technical signal that has marked the start of new bull markets in past cycles.

The firm's analysis shows that short-term holders are sitting on unrealized profits of around 33%, the richest margin since December 2024, and traders have locked in 25,700 BTC in profit on a single day last week. This trend suggests heavy profit-taking right after a price spike often signals short-term exhaustion.

CryptoQuant expects Bitcoin to still have room to climb further but warns that a near-term correction is increasingly likely. The firm has identified three technical floors where buyers have historically stepped in: the 365-day moving average around $80,000, the 200-day moving average near $71,000, and the on-chain realized price around $67,000.