Profit-Taking Signals Emerge as Bitcoin Rally Shows Signs of Weakening
Bitcoin's recent price surge may be losing steam as profit-taking signals appear. According to CryptoQuant, short-term traders are sitting on an average unrealized profit of about 33%, which is the highest since December 2024. This has historically tempted people to sell, and holders last week realized a record 25.7K BTC in profit, one day after Bitcoin's price smashed its eight-month high.
CryptoQuant declares that Bitcoin is still in a bull market, despite the recent slowdown, as it crossed above its 365-day moving average, a 'definitive technical signal' marking the start of bull markets in past cycles. However, the firm warns that the rally may be losing steam and a near-term correction looks increasingly likely.
The report identifies three support levels where a correction could find a floor: the 365-day moving average at about $80,000, the 200-day moving average at about $71,000, and traders' on-chain realized price at about $67,000. As long as these levels hold, CryptoQuant says a pullback would be a healthy consolidation within a young bull market rather than a trend reversal.