CryptoQuant Warns of Weakening Bitcoin Rally Amid Record Profit-Taking
CryptoQuant's analysis suggests that Bitcoin's rally is showing signs of weakening. The on-chain data platform pointed out that profit-taking has reached a yearly high, with unrealized profits among investors holding their assets for one to three months reaching about 33%. This is the highest level since December 2024.
The net realized profit peaked at 25.7K BTC on September 22, indicating that investors have been realizing significant gains from their Bitcoin holdings. However, CryptoQuant warns that this could be a sign of profit-taking behavior, which could lead to a potential pullback in the market.
CryptoQuant identifies $80,000 as the first support level to watch, cautioning that the ongoing rally has become more vulnerable due to weakening demand and increasing profit-taking. The platform emphasizes that this does not mean the bull market is over but rather that it has become more fragile.