Bitcoin’s recent surge appears to be cooling, with data analytics firm CryptoQuant pointing to rising profit-taking and slower demand as key factors behind the pause. Despite this deceleration, CryptoQuant maintains that Bitcoin remains in a bull market supported by long-term technical trends.
Profit-taking and recent price action
CryptoQuant, a South Korea-based provider of blockchain analytics, reported that investors are increasingly locking in gains after Bitcoin’s price climbed sharply in recent weeks. The cryptocurrency recently traded at $82,939, marking a nearly 4% decline over the past seven days, after reaching an eight-month high of $87,251 last week.
Last week’s rally led CryptoQuant to call a bull market for Bitcoin, citing its move above the 365-day moving average as a historically strong technical signal for upward cycles. According to the firm, surpassing this long-term average has previously marked fresh bull runs for the asset.
Short-term holders, defined as those keeping their coins for one to three months, are now sitting on average unrealized profits of approximately 33%. This is the highest level seen since December 2024, a margin that has encouraged many traders to sell in the past.
Last week, Bitcoin holders realized profits equivalent to 25,700 BTC in a single day, the highest daily total of 2026. This followed closely on the heels of the asset hitting its eight-month peak.
CryptoQuant noted, “Short-term holders are now sitting on the largest unrealized profits since December 2024, with a sharp increase in profit-taking recorded just after Bitcoin reached its eight-month high.”
Market outlook and key support levels
While CryptoQuant believes Bitcoin could still advance, it highlighted that current momentum is weakening and a short-term correction appears likely. The analytics firm did not specify how deep any potential pullback might be but 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, according to CryptoQuant, would signal that a correction remains a normal consolidation phase in an ongoing bull market rather than signaling the end of upward momentum.
| Support Level | Price (approx.) |
|---|---|
| 365-day MA | $80,000 |
| 200-day MA | $71,000 |
| On-chain realized price | $67,000 |
Broader context and macro influences
Bitcoin’s price reached an all-time high of $126,080 in October last year before retreating, triggered by a major liquidation event that unwound over $19 billion in positions.
Earlier this year, Bitcoin extended its decline as the Federal Reserve made clear its intention to keep interest rates unchanged, while investor attention shifted to artificial intelligence-related stocks amid the broader search for returns.
Recently, the “debasement trade”—where investors purchase Bitcoin and other assets as hedges against currency depreciation—has gained traction again. This resurgence comes after total U.S. federal debt surpassed $40 trillion for the first time in July.
Traditionally, Bitcoin and precious metals like gold have tended to outperform during periods of U.S. dollar weakness.
Mini dictionary: CryptoQuant – A South Korea-based blockchain analytics firm that offers data and insights for digital asset markets, used by traders and institutions to monitor market trends and on-chain activity.
