Bitcoin Bulls Breathe Easy: Profit-Taking Shows No Signs of Market Frenzy

Bitcoin’s recent rally hasn’t triggered panic selling—yet. On-chain data reveals a surprisingly disciplined profit-taking pattern, with no red flags signaling an overheated market.

No Casino-Level Leverage (For Once)

Unlike traditional finance’s obsession with margin debt, BTC’s current cycle shows traders cashing out gains without the usual reckless leverage. Imagine that—crypto investors acting rationally.

The Calm Before the Next Storm?

While derivatives markets remain relatively tame, history suggests this equilibrium won’t last. When Wall Street’s algo-traders finally wake up to the rally, expect the usual circus of liquidations and overreactions.

Bitcoin Has Room To Grow As It Prepares For Historic Weekly Close

Bitcoin is on track to record its highest weekly close in history, signaling growing strength as it prepares for what many believe could be the next major bullish phase. After surging to a new all-time high near $112,000 earlier this week, BTC is now stabilizing above the $105,000 level—positioning itself above key short-term support going into next week.

Still, while price action paints a bullish picture, macroeconomic conditions continue to pose risks. High interest rates, tightening financial conditions, and broader market uncertainty remain major factors. Investors are cautiously optimistic, but volatility could quickly return if global risk sentiment deteriorates.

On-chain data offers a more grounded view of the current cycle. According to Darkfost, CryptoQuant data shows that realized profits currently stand at 104,000 BTC, or around $11 billion. While that number may seem large, it’s still well below the historical danger zone of 350,000 BTC—a level that typically signals euphoric conditions or overheating.

This suggests the market remains in a healthy profit-taking zone. “Profit-taking is not a red flag during a bull market,” Darkfost noted. “It’s necessary. It helps maintain momentum and keeps participants engaged.”

The coming week will be critical. A confirmed weekly close above $105K could solidify this level as new support and set the stage for further upside. But if bulls fail to hold ground, the rally risks losing steam. For now, bitcoin appears strong, but the market is entering a zone where conviction will be tested.

BTC Holds Key Support After Rejection From New ATH

Bitcoin is currently trading around $107,750 after a volatile week that saw prices hit a new all-time high near $112,000. The daily chart shows BTC pulling back from overbought conditions but holding firmly above the 34-day EMA at $100,886—a level that has consistently acted as dynamic support during this uptrend.

Price remains well above the 50, 100, and 200-day SMAs, confirming a strong bullish structure. The key horizontal support at $103,600—now reclaimed—is another crucial zone. This level previously acted as a resistance ceiling during the March-April range and now serves as a potential launchpad if BTC consolidates above it.

Volume appears to be declining slightly on the pullback, which may suggest this is a healthy retrace rather than a reversal. As long as Bitcoin maintains above the $103,600–$105,000 zone, bulls remain in control. A deeper correction WOULD find initial support around the 34 EMA and then the 100 SMA near $91,000.

For now, the bullish trend remains intact. However, rejection at $112K and slowing momentum call for caution. A weekly close above $105K would confirm strength, while a break below $103K could trigger short-term weakness.

Featured image from Dall-E, chart from TradingView