Bitcoin Rally May Stall as Profit-Taking Hits Historic High

CryptoQuant has warned that Bitcoin's recent rally may stall due to rising profit-taking and slower demand. The data analytics firm reported that short-term holders of Bitcoin are now sitting on average unrealized profits of approximately 33%, which is the highest level seen since December 2024.

This sharp increase in profit-taking was recorded just after Bitcoin reached its eight-month high, with investors realizing profits equivalent to 25,700 BTC in a single day. CryptoQuant noted that this is a historically strong technical signal for upward cycles, but the current momentum is weakening and a short-term correction appears likely.

The firm identified three major support levels where price stabilization could occur: the 365-day moving average at around $80,000, the 200-day moving average near $71,000, and the on-chain realized price for traders at roughly $67,000. Maintaining these support levels would signal that a correction remains a normal consolidation phase in an ongoing bull market rather than signaling the end of upward momentum.