Bitcoin's Momentum Fades as Profit-Taking Surges and Demand Slows

CryptoQuant, a cryptocurrency analysis platform, is sounding an alarm about Bitcoin's recent price action. After reaching its highest level in eight months at $87,400, various on-chain indicators are signaling a weakening of the bullish momentum.

The company's Bitcoin Bull Score Index indicator stands at 90 out of 100, indicating an extremely strong bullish outlook. However, traders' on-chain unrealized profit margin has risen to 33%, reaching its highest level since December 2024. This could create selling pressure as investors take profits, which is already happening.

CryptoQuant data shows that Bitcoin investors realized a total of 25,700 $BTC in profits on September 22nd, the highest profit-taking recorded in a single day this year. Another notable indicator is the surge in activity related to sending altcoins to exchanges, with 76,000 transactions and 51,000 different investors over seven days.

The report also notes that demand indicators are weakening, including visible demand in the spot market, which has shrunk by 170,000 $BTC in the last 30 days. Speculative demand growth in futures has also slowed significantly, from 164,000 $BTC on September 14th to only 16,000 $BTC according to the latest data.