Bitcoin Rally Loses Steam as Profit-Taking Accelerates

Bitcoin's recent surge may be losing steam, according to a new report by CryptoQuant. The firm notes that profit-taking is appearing in the market, which could indicate a near-term correction.

The price of Bitcoin has been steadily increasing over the past few weeks, reaching an eight-month high of $87,251 last week. However, it has since dropped to around $82,939, down nearly 4% over a seven-day period.

CryptoQuant attributes this decline to short-term traders who are sitting on significant profits. The firm notes that these traders have an average unrealized profit of about 33%, which is the highest since December 2024. This has led to a surge in profit-taking, with holders realizing $25.8K BTC in profit last week.

CryptoQuant identifies three potential support levels where a correction could find a floor: the 365-day moving average at around $80,000, the 200-day moving average at approximately $71,000, and traders' on-chain realized price at about $67,000. The firm emphasizes that as long as these levels hold, any pullback would be a healthy consolidation within a young bull market.