Bitcoin rally loses momentum as profit-taking expands — CryptoQuant

• Bitcoin’s trader unrealized profit margin has climbed to 33%, its highest level since December 2024, signaling elevated profit-taking pressure.
• BTC holders realized 25,700 BTC in profit last week, marking the year's largest single-day profit realization as prices rallied.
• If Bitcoin holds above the 365-day moving average at $80,000, the consolidation would remain healthy rather than a trend reversal.

Bitcoin's (BTC) bull market remains intact, but the rally is beginning to lose momentum after the top crypto hit an eight-month high of $87,400 last week.

Bitcoin traders are increasingly taking profits

BTC's close above the 365-day moving average last week confirmed a new bull-market phase, while its Bitcoin Bull Score Index sits at an extremely bullish 90 out of 100, according to a CryptoQuant report on Tuesday. However, several indicators now point to rising profit-taking and weakening demand, conditions that could precede a correction.

The first warning sign comes from trader profit margins, which have risen to their highest level since December 2024. CryptoQuant noted that short-term traders' unrealized profit margin has climbed to 33%.

Historically, margins at such elevated levels have encouraged market participants to lock in gains as unrealized profits become increasingly attractive to realize.

“Two on-chain reads flag rising sell-side pressure from participants sitting on fresh gains, a classic late-rally warning, even within a healthy bull market,” CryptoQuant noted.

The data also shows that profit-taking is already occurring. Bitcoin holders realized 25,700 BTC in profit on September 22, marking the largest single-day profit realization recorded in 2026.

CryptoQuant signaled that the move confirms market participants are actively booking gains, adding that similar behavior has historically appeared around local tops after substantial rallies.

The second warning sign is emerging from altcoin exchange activity. CryptoQuant reported that the seven-day cumulative number of altcoin inflow transactions surged to 76,000, the highest level since October 17. The rise came 11 days after Bitcoin reached its previous all-time high.

The number of depositing addresses also climbed to 51,000 over the same period, reaching its highest level since October 2025. The simultaneous rise in transactions and depositing addresses suggests exchange activity is broad-based rather than driven by a small number of participants.

Bitcoin spot and futures demand weaken as price holds above $80K

Beyond profit-taking, CryptoQuant stated that the underlying demand supporting Bitcoin’s rally is also weakening. Apparent spot demand has contracted by 170,000 BTC over the past 30 days, indicating that direct buying demand has continued to decline.

At the same time, speculative futures demand has slowed sharply. CryptoQuant shared that futures demand growth fell from 164,000 BTC on September 14 to just 16,000 BTC currently.

The firm described this combination as a significant loss of momentum because neither spot demand nor speculative futures demand is currently accelerating.

“The recent advance was driven largely by speculative futures demand; with spot demand still in contraction and futures growth stalling, near- term upside becomes harder to sustain,” the report added.

Despite the warning signs, CryptoQuant said the broader bull-market structure remains intact above several key support levels.

The first is the 365-day moving average at approximately $80,000, which Bitcoin recently reclaimed. Below that sits the 200-day moving average at around $71,000, followed by the traders’ on-chain realized price at approximately $67,000.

CryptoQuant said these levels could provide support if Bitcoin enters a correction.

“As long as these hold, a correction would be a healthy consolidation within a young bull market rather than a trend reversal,” CryptoQuant wrote.

Bitcoin is trading at $83,250, up 0.4% in the past 24 hours at the time of writing.