From Bullish to Cooldown: Bitcoin Remains in Profit-Taking Phase as Demand Fades (CryptoQuant)
Bitcoin’s (BTC) momentum has cooled down in current weeks as buyers persist in locking in earnings. Slowing demand has additionally contributed to the calm down, with present figures about two-thirds lower than final month’s information.
In line with the weekly report from CryptoQuant, the Bitcoin market has moved from an additional bullish to a bullish cooldown section.
Bitcoin Momentum is Cooling Down
Throughout this cool-down section, Bitcoin’s obvious demand has fallen from a July peak of 174,000 BTC to 59,000 BTC right now. Institutional BTC consumers have slowed down of their accumulation – they’re nonetheless shopping for, however not as a lot as earlier than. The enterprise intelligence agency, Technique, which is the lead BTC purchaser, has seen its purchases tumble from a November 2024 excessive of 171,000 to 27,000 over the previous 30 days.
Spot Bitcoin exchange-traded funds (ETFs) are additionally seeing their lowest inflows in 4 months. Their 30-day internet purchases at the moment hover round 11,000 BTC, a degree not seen since late April.
“This broad-based decline in demand progress suggests fading momentum, which probably contributed to the current value correction. Continued softness in demand may preserve Bitcoin in a consolidation section,” CryptoQuant acknowledged.
Furthermore, on-chain indicators are flashing weaker alerts, which reveal that the market stays constructive, however with fading bullish momentum. The CryptoQuant Bull Rating Index moved from the “Further Bullish” to “Bullish Cooldown” section after BTC rallied previous $120,000. Present market circumstances tally with the continuing value decline.
“The transition to a bullish cooldown usually precedes sideways motion or delicate corrections. With no return to robust demand alerts, additional upward momentum could stay restricted within the close to time period,” the analytics agency added.
Help at $110K?
Moreover, new whale buyers have been taking earnings. This cohort of buyers has led a spree that has realized at the very least $74 billion in earnings since July 4. Notably, the market recorded its largest every day revenue thus far this 12 months ($9 billion) on that very same day.
Since then, the buyers haven’t relented in taking earnings – August 16 noticed new whale buyers understand as much as $2 billion in beneficial properties.
In the meantime, bitcoin’s value hovered round $116,000 on the time of writing, however with diminished draw back danger. CryptoQuant analysts consider the main digital asset could discover assist close to $110,000, which is the Dealer On-chain Realized Worth. This degree usually acts as assist throughout bull cycles, and merchants’ unrealized revenue margin goes to zero, discouraging extra promoting.
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