ProfitTaking – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Thu, 04 Sep 2025 08:57:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 ProfitTaking – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Bitcoin whale holdings dwindle to lowest levels since 2018 amid significant profit-taking https://earlybirdsinvest.com/bitcoin-whale-holdings-dwindle-to-lowest-levels-since-2018-amid-significant-profit-taking/ https://earlybirdsinvest.com/bitcoin-whale-holdings-dwindle-to-lowest-levels-since-2018-amid-significant-profit-taking/#respond Thu, 04 Sep 2025 08:57:48 +0000 https://earlybirdsinvest.com/bitcoin-whale-holdings-dwindle-to-lowest-levels-since-2018-amid-significant-profit-taking/

Bitcoin’s largest investors are steadily reducing their exposure, with data showing a direct link to profit-taking during the recent rally.

Glassnode reported on Sept. 3 that wallets holding between 100 and 10,000 BTC now average just 488 BTC—the lowest level since December 2018.

Bitcoin Supply Per Whales
Bitcoin Supply Per Whales (Source: Glassnode)

According to the firm, this decline marks a continuation of a trend that began in November 2024.

The shrinking balances coincide with renewed activity from dormant wallets, suggesting whales are realizing gains as prices top $100,000.

Checkonchain data shows that long-term Bitcoin holders realized between $3 billion and $4 billion during the market highs in January and July this year.

Bitcoon Realized Value by Age
Bitcoon Realized Value by Age (Source: CheckOnChain)

These sales show that this cohort aggressively converted their paper gains into realized profits, which directly contributed to the fall in average whale holdings.

Despite the renewed selling pressure, Bitcoin continues to trade near $110,000, showing that market demand remains strong enough to absorb the whales profit-taking.

]]> https://earlybirdsinvest.com/bitcoin-whale-holdings-dwindle-to-lowest-levels-since-2018-amid-significant-profit-taking/feed/ 0 56689 Bitcoin Profit-Taking Cools Off at $115K – Maxi Doge Looks Poised to Pop https://earlybirdsinvest.com/bitcoin-profit-taking-cools-off-at-115k-maxi-doge-looks-poised-to-pop/ https://earlybirdsinvest.com/bitcoin-profit-taking-cools-off-at-115k-maxi-doge-looks-poised-to-pop/#respond Thu, 07 Aug 2025 09:55:27 +0000 https://earlybirdsinvest.com/bitcoin-profit-taking-cools-off-at-115k-maxi-doge-looks-poised-to-pop/

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Bitcoin short-term holders are finally chilling out.

After weeks of aggressive profit-taking near the $123K peak, new Glassnode data shows that spending activity from recent buyers has cooled off – a signal that the worst of the post-ATH dump might be behind us.

That’s a big deal. When short-term holders stop rushing for the exits, it gives long-term buyers room to accumulate without fighting constant sell pressure. In other words, the bull cycle gets to breathe again.

And when Bitcoin calms down? The degens start hunting. The best meme coins historically pump hardest in these windows. And with the charts settling, $MAXI might be next in line to rip.

Profit-Taking Drops as Bitcoin Floats Around $115K

Glassnode’s latest report paints a calmer picture of the Bitcoin market. Short-Term Holder (STH) Spent Volume (a key metric that tracks how many recent buyers are selling) has dropped to 45%, sliding below the neutral 50% line.

Risk indicator for short-term holder percent spent in profit vs $BTC price.
Source: Glassnode.

That means fewer newcomers are cashing out, even as $BTC trades just under $115K.

On top of that, 70% of STH supply is still in profit, signaling that recent buyers haven’t been shaken out.

Glassnode called it a ‘relatively balanced position’ that aligns with the mid-phase of previous bull markets. In other words, it’s not euphoric, but far from bearish.

Onchain tracker Checkonchain backs this up. According to its SOPR analysis, many of the folks who bought near the $123K top are now capitulating at breakeven – classic weak-hand behavior. But that’s exactly what strong markets need: the exit of uncertain traders, replaced by conviction buyers.

CheckonChain on X.

Historically, STH capitulation clears the runway for upside continuation. With major voices like Tom Lee still eyeing a $250K target for 2025, this consolidation might just be the pit stop before the next leg. If $BTC holds its ground into Q4, the appetite for risk is only going to grow.

Meme Coin Appetite Grows When $BTC Stabilizes

When Bitcoin chills, meme coins cook. It’s a familiar pattern — once $BTC stabilizes, traders itching for bigger gains start rotating into high-risk, high-reward crypto plays. Meme coins sit at the top of that list, offering insane volatility with outsized upside.

We’ve seen this movie before. Back in May 2021, $DOGE hit $0.7376 as Bitcoin coasted near its then-ATH. Fast-forward to late 2024: as $BTC surged post-election, $DOGE nearly broke $0.50 again.

Dogecoin ($DOGE) price graph 2020-2025.
Source: CoinMarketCap.

Around the same time, $PEPE exploded to an all-time high of $0.00002825 in December, all while Bitcoin rallied in the background.

That’s the opportunity in front of us now. With profit-taking easing off and Bitcoin holding firm above $110K, traders are already eyeing the next big crypto runner.

Maxi Doge ($MAXI), a satirical beast of a token built for the 1000x leverage era, positions itself as the natural successor to Dogecoin, but with more caffeine and fewer naps.

If the risk-on mood returns, $MAXI could be the first to benefit.

Maxi Doge ($MAXI): The Meme Coin Built for the Bull

Maxi Doge ($MAXI) isn’t just another Doge clone; it’s the final form. A satirical, ultra-degen meme coin built for the trader who dreams of candlesticks and maxes out leverage before breakfast.

Born in the gym and raised on caffeine, $MAXI captures the raw spirit of bull market insanity: no sleep, only pumps.

Built on Ethereum, $MAXI trades at just $0.000251 and has already raised over $440K in its presale.

For the true believers, staking offers a wild 593% APY.

Maxi Doge ($MAXI) tokenomics and utility of staking, contests, and partner events.

Unlike some meme coins that awkwardly bolt on utility, $MAXI embraces its purpose: pure, unfiltered meme adrenaline. Its branding leans all the way in: 1000x trades, rage-fueled lifts, and enough testosterone to break TradingView.

But there’s more beneath the flex. 25% of the total supply is allocated to the MAXI Fund, reserved for future partnerships and marketing – with hints of a futures exchange collab where degens might one day trade $MAXI itself with 100x+ leverage.

Compared to $DOGE and $SHIB, which launched with nothing but vibes, $MAXI enters the arena with a fully-formed identity and roadmap. It’s not a meme, it’s a movement.

Final Form, Final Pump? Why $MAXI Could Be the Top Dog Meme Coin This Cycle

Bitcoin’s cooling profit-taking marks a shift: not into fear, but into calm. That’s bullish. When the selling slows and accumulation picks up, meme coins tend to ride the next wave of risk-on sentiment.

Maxi Doge ($MAXI) embodies the current cycle: full-degen, hyper-aware, and totally unbothered by fundamentals. Its launch hits right as market appetite rotates back toward high-volatility plays with greater potential upside.

Sure, it’s absurd. But that’s the point. In a market driven by vibes and volume, $MAXI might just be the one bench-pressing the others off the chart.

Always do your own research. Presales in crypto are high-risk, high-reward. Don’t invest more than you’re prepared to lose, and make sure to verify all presale links through official sources.

 

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

]]> https://earlybirdsinvest.com/bitcoin-profit-taking-cools-off-at-115k-maxi-doge-looks-poised-to-pop/feed/ 0 51941 Analytics Firm Says $9,600,000,000 Discrete Profit-Taking On Bitcoin Proved BTC’s Resilience, Outlines Level That Could See Rapid and Intense Sell-Side Pressure https://earlybirdsinvest.com/analytics-firm-says-9600000000-discrete-profit-taking-on-bitcoin-proved-btcs-resilience-outlines-level-that-could-see-rapid-and-intense-sell-side-pressure/ https://earlybirdsinvest.com/analytics-firm-says-9600000000-discrete-profit-taking-on-bitcoin-proved-btcs-resilience-outlines-level-that-could-see-rapid-and-intense-sell-side-pressure/#respond Thu, 31 Jul 2025 21:44:56 +0000 https://earlybirdsinvest.com/analytics-firm-says-9600000000-discrete-profit-taking-on-bitcoin-proved-btcs-resilience-outlines-level-that-could-see-rapid-and-intense-sell-side-pressure/

Crypto analytics platform Glassnode is saying Bitcoin (BTC) has proven its resilience after a massive stash of the flagship digital asset was sold off last weekend.

Glassnode says an unnamed investor disposed of Bitcoin worth nearly $10 billion via Galaxy Digital last weekend, demonstrating Bitcoin’s “growing liquidity profile and market depth.”

“This liquidity was put to the test over the weekend, as an early Bitcoin investor, via Galaxy Digital’s services, distributed 80,000 BTC (approximately $9.6 billion), likely through a mix of market sales and [over-the-counter] OTC transactions. The resulting sell-side pressure drove the price down to $115,000 before stabilizing at $119,000.

This episode illustrates Bitcoin’s ability to absorb large sell-side volumes, even during typically thinner weekend trading hours, reinforcing the market’s structural robustness.”

The analytics platform says that a “super-majority” of Bitcoin holders are currently sitting on significant unrealized profits, with more than 97% of the circulating supply in the black.

“This underscores how the majority of investors are sitting on substantial paper gains, and sets up an environment of potential future sell-side pressure should prices continue to rise further.”

Source: Glassnode

According to Glassnode, profit-taking could “sharply intensify” if Bitcoin goes up by around 20% from the current level.

“…Bitcoin may remain range-bound between $105,000 and $125,000 until a decisive breakout occurs. Should the market break convincingly higher, the $141,000 region is likely to present the next major zone of resistance where sell-side pressure may intensify rapidly…”

Bitcoin is trading at $117,651 at time of writing.

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]]> https://earlybirdsinvest.com/analytics-firm-says-9600000000-discrete-profit-taking-on-bitcoin-proved-btcs-resilience-outlines-level-that-could-see-rapid-and-intense-sell-side-pressure/feed/ 0 50758 Bitcoin New Investor Dominance Rises – No Signs of Mass Profit-Taking Yet https://earlybirdsinvest.com/bitcoin-new-investor-dominance-rises-no-signs-of-mass-profit-taking-yet/ https://earlybirdsinvest.com/bitcoin-new-investor-dominance-rises-no-signs-of-mass-profit-taking-yet/#respond Thu, 31 Jul 2025 17:25:27 +0000 https://earlybirdsinvest.com/bitcoin-new-investor-dominance-rises-no-signs-of-mass-profit-taking-yet/

Bitcoin’s new investor dominance is gaining momentum just as the asset consolidates in a tight range, setting the stage for a major breakout. After more than two weeks of sideways movement between $115,000 and $120,000, BTC continues to trade within this well-defined range—building pressure that typically precedes a sharp move.

Related Reading

Data from CryptoQuant highlights a crucial dynamic: the comparison between demand and supply from new versus old investors. The current new investor dominance sits at 30%, only half of the “overheated” range of 60–70% seen during euphoric phases, but the trend is clearly climbing. This means new liquidity is entering the market steadily, while old holders are still distributing at a manageable pace. The supply of long-term holders is absorbing this growing young demand without disrupting the price structure.

This healthy balance suggests that the market is still in a stable late bull phase, with no signs of mass profit-taking or capitulation from seasoned investors. With Bitcoin maintaining a bullish structure and demand from fresh entrants rising, the coming days will be critical.

Bitcoin Enters Healthy Late Bull Phase as New Investor Activity Grows

Top analyst Axel Adler recently shared detailed insights into Bitcoin’s market structure, focusing on the balance between new and old investor behavior. According to Adler, previous peaks in new investor dominance—64% in March 2024 and 72% in December 2024—aligned precisely with local BTC price tops. At those points, new liquidity began to wane, and experienced holders ramped up profit-taking.

Bitcoin Comparison of Demand and Supply Between New and Old Investors | Source: CryptoQuant
Bitcoin Comparison of Demand and Supply Between New and Old Investors | Source: CryptoQuant

Currently, new investor dominance stands at 30%, which is still far from those overheated extremes. However, the trend is upward. The purple fill on the chart, which reflects cumulative activity from younger coins, has been climbing steadily since July 2024. This indicates that a fresh wave of buyers continues to enter the market, while selling pressure from old hands remains limited.

This dynamic creates room for further bullish continuation before the typical euphoria zone—above 60–70% dominance—takes hold. Old holders are still distributing coins, but only moderately. A coefficient of 0.3 means that three-year-old coins are absorbing demand without triggering major volatility. This balance suggests that the market remains structurally sound.

Related Reading

Bitcoin Forms A Tight Consolidation Range

Bitcoin is currently trading at $118,413, consolidating in a narrow range between $115,724 and $122,077, as seen in the 8-hour chart. This sideways movement has persisted for over two weeks, indicating indecision in the market. The key support sits at $115,724, which has been tested multiple times but held firmly, while the $122,077 level acts as immediate resistance after a strong rejection earlier in July.

BTC consolidation continues | Source: BTCUSDT chart on TradingView
BTC consolidation continues | Source: BTCUSDT chart on TradingView

The price remains above the 50, 100, and 200-period moving averages, which now align in bullish order—another sign that the underlying trend is still intact despite short-term consolidation. Volume remains relatively low, suggesting that neither bulls nor bears are aggressively positioning at the moment. However, such tight ranges often precede large directional moves.

Related Reading

If bulls manage to break above the $122K resistance with strong volume, it could trigger a continuation toward new highs. On the other hand, a breakdown below the $115.7K support would expose downside risk. Potentially leading to a retest of the 100-period moving average around $114,490 or even the 200-period average near $110,188.

Featured image from Dall-E, chart from TradingView

]]> https://earlybirdsinvest.com/bitcoin-new-investor-dominance-rises-no-signs-of-mass-profit-taking-yet/feed/ 0 50725 Ethereum Price Slips on Profit-Taking – Limited Downside as Whale Demand Holds https://earlybirdsinvest.com/ethereum-price-slips-on-profit-taking-limited-downside-as-whale-demand-holds/ https://earlybirdsinvest.com/ethereum-price-slips-on-profit-taking-limited-downside-as-whale-demand-holds/#respond Thu, 24 Jul 2025 06:48:48 +0000 https://earlybirdsinvest.com/ethereum-price-slips-on-profit-taking-limited-downside-as-whale-demand-holds/

Ethereum price started a downside correction from the $3,850 zone. ETH is now moving lower but might find bids near the $3,520 support zone.

  • Ethereum started a downside correction below the $3,770 level.
  • The price is trading below $3,680 and the 100-hourly Simple Moving Average.
  • There is a key bearish trend line forming with resistance at $3,670 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a fresh increase if it remains supported above the $3,550 zone in the near term.

Ethereum Price Holds Support

Ethereum price failed to extend gains above the $3,850 level and started a downside correction, like Bitcoin. ETH price traded below the $3,800 and $3,770 support levels.

There was a move below the 50% Fib retracement level of the upward move from the $3,480 swing low to the $3,859 high. The decline was such that the price even dived below the $3,660 level and the 100-hourly Simple Moving Average.

However, the bulls were active near the 76.4% Fib retracement level of the upward move from the $3,480 swing low to the $3,859 high. Ethereum price is now trading below $3,680 and the 100-hourly Simple Moving Average.

On the upside, the price could face resistance near the $3,670 level. There is also a key bearish trend line forming with resistance at $3,670 on the hourly chart of ETH/USD. The next key resistance is near the $3,770 level. The first major resistance is near the $3,800 level. A clear move above the $3,800 resistance might send the price toward the $3,850 resistance.

Ethereum Price
Source: ETHUSD on TradingView.com

An upside break above the $3,850 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,000 resistance zone or even $4,200 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $3,670 resistance, it could start a downside correction. Initial support on the downside is near the $3,600 level. The first major support sits near the $3,570 zone.

A clear move below the $3,570 support might push the price toward the $3,520 support. Any more losses might send the price toward the $3,450 support level in the near term. The next key support sits at $3,320.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $3,520

Major Resistance Level – $3,670

]]> https://earlybirdsinvest.com/ethereum-price-slips-on-profit-taking-limited-downside-as-whale-demand-holds/feed/ 0 49362 Tron’s 374% Profit-Taking Spree Uncovered—Here’s Who Was Behind It https://earlybirdsinvest.com/trons-374-profit-taking-spree-uncovered-heres-who-was-behind-it/ https://earlybirdsinvest.com/trons-374-profit-taking-spree-uncovered-heres-who-was-behind-it/#respond Wed, 25 Jun 2025 05:10:39 +0000 https://earlybirdsinvest.com/trons-374-profit-taking-spree-uncovered-heres-who-was-behind-it/

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On-chain data shows Tron (TRX) observed a large profit-taking spike earlier in the month. Which type of holder was responsible for the move?

Tron SOPR Saw A Huge Spike Earlier In The Month

In a CryptoQuant Quicktake post, analyst Maartunn has talked about the recent trend in the Spent Output Profit Ratio (SOPR) of Tron. The SOPR refers to an on-chain indicator that tells us about whether the TRX investors are moving or selling their coins at a profit or loss.

The indicator works by going through the transfer history of each coin being moved to see what price it was last transacted at. Coins that have this cost basis above the current spot price are contributing to loss realization, while those with the opposite setup to profit realization.

Related Reading

The SOPR takes the ratio between the spent value and cost basis, and sums it up for all coins being sold on the blockchain to find a net situation for the market as a whole.

When the value of the indicator is greater than 1, it means the investors are, on average, realizing a profit through their transactions. On the other hand, the metric being under this threshold suggests the dominance of loss realization in the market.

Now, here is the chart shared by the quant that shows the trend in the Tron SOPR over the past year:

Bitcoin SOPR
The value of the metric appears to have registered a sharp spike earlier | Source: CryptoQuant

As displayed in the above graph, the Tron SOPR saw a huge spike above the 1 mark earlier in the month, implying investors took part in a significant amount of profit-taking.

From the chart, it’s also visible that there were other profit realization spikes during the past year, but the current one stands out for its scale. The latest peak in the metric saw its value go to 4.74, corresponding to a profit margin of 374%.

“With TRX priced at $0.268 at the time, the average acquisition price for those coins would have been around $0.0566,” explains Maartunn. Interestingly, Tron hasn’t seen extended periods around this price mark since late 2022, meaning that the tokens would have been held for a good while before being finally transacted this month.

Usually, when dormant hands break their silence, it’s likely to be for selling-related purposes. That said, it’s not the only reason they may do so. “The activity could be tied to early investors realizing gains, internal transfers, or reallocation decisions,” notes the analyst.

Related Reading

In some other news, the USDT supply on the Tron network has reached a new milestone, as institutional DeFi solutions provider Sentora (formerly IntoTheBlock) has pointed out in an X post.

Tron USDT Supply
The trend in the USDT supply circulating on the TRX network | Source: Sentora on X

There is now over $80 billion in USDT supply circulating on Tron, the second-most out of any cryptocurrency network.

TRX Price

At the time of writing, Tron is trading around $0.273, up 0.5% over the last 24 hours.

Tron Price Chart
Looks like TRX has made recovery from its plunge | Source: TRXUSDT on TradingView

Featured image from Dall-E, IntoTheBlock.com, CryptoQuant.com, chart from TradingView.com

]]> https://earlybirdsinvest.com/trons-374-profit-taking-spree-uncovered-heres-who-was-behind-it/feed/ 0 43979 Profit-taking, not capitulation: institutions cut Bitcoin ETF exposure by 23% in Q1 https://earlybirdsinvest.com/profit-taking-not-capitulation-institutions-cut-bitcoin-etf-exposure-by-23-in-q1/ https://earlybirdsinvest.com/profit-taking-not-capitulation-institutions-cut-bitcoin-etf-exposure-by-23-in-q1/#respond Fri, 06 Jun 2025 02:15:55 +0000 https://earlybirdsinvest.com/profit-taking-not-capitulation-institutions-cut-bitcoin-etf-exposure-by-23-in-q1/

Institutional investors cut Bitcoin (BTC) allocations in US-based spot exchange-traded funds (ETFs) during the first quarter after hedging profits waned and futures premiums compressed, a June 5 CoinShares report showed.

The report assessed 13-F filings from asset managers with at least $100 million in assets under management. These investors reported $21.2 billion in Bitcoin ETF exposure as of March 31, down from $27.4 billion registered in last year’s fourth quarter.

Pullback in ETF exposure

The 23% pullback outpaced the 12% slide in the overall ETF market’s assets under management and came as Bitcoin dropped 11% over the period. 

CoinShares tied most of the reduction to hedge funds. Those firms trimmed holdings by almost 33% after the decreasing appeal of the basis trade, which captured wide spreads between futures and spot prices throughout 2024.

Advisors moved in the opposite direction. Dollar-denominated stakes decreased in value, yet Bitcoin-denominated positions increased, lifting advisors to 50% of all filer assets.

Meanwhile, Hedge funds slipped to 32%, and brokerages held 10%. Advisors also dominated headcount, accounting for 81% of the 755 managers that disclosed Bitcoin ETFs. 

Despite selling, professional investors still commanded nearly 23% of Bitcoin ETF assets, a modest decrease from the 26.3% share reported in the prior quarter. 

CoinShares framed the decline as tactical rather than structural, noting that average portfolio allocations sit below 1%. The firm expects larger institutions to build positions once regulatory guidance stabilizes, internal committees approve crypto mandates, and education gaps close.

ETF concentration remains high

Filers kept a tight focus on three products. BlackRock’s iShares Bitcoin Trust (IBIT) carried $12.7 billion from professional investors, or almost 33% of the ETF’s assets. Fidelity’s FBTC followed with $3.6 billion, while Grayscale’s converted GBTC held $2.2 billion. Together, the trio account for 85% of institutional ownership.

Quarterly flows reflected that hierarchy. BlackRock drew fresh capital from Goldman Sachs and Macquarie, which opened or expanded positions worth $206 million and $136 million, respectively. 

Hedge fund heavyweight Millennium Management reversed course, slashing $980 million, and Bridgewater-style advisor Bracebridge Capital liquidated $335 million. 

Wisconsin’s state pension fund sold its entire $323 million stake, while Abu Dhabi’s Mubadala sovereign fund lifted holdings to $411 million.

Institutional retrenchment contrasted with corporate treasury accumulation. CoinShares estimated company treasuries increased Bitcoin reserves by 18.7% year-to-date, reaching 1.98 million coins in mid-May. 

The report noted that corporations emulated Strategy’s balance sheet strategy. At the same time, professional asset managers opted to lock in gains earned since the launch of ETFs in January 2024, following Bitcoin’s crossing of the $100,000 mark in February.

Mentioned in this article
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]]> https://earlybirdsinvest.com/profit-taking-not-capitulation-institutions-cut-bitcoin-etf-exposure-by-23-in-q1/feed/ 0 40376 Bitcoin UTXO Signal Approaches 99% Level – Bullish Signal Or Profit-Taking Setup? https://earlybirdsinvest.com/bitcoin-utxo-signal-approaches-99-level-bullish-signal-or-profit-taking-setup/ https://earlybirdsinvest.com/bitcoin-utxo-signal-approaches-99-level-bullish-signal-or-profit-taking-setup/#respond Tue, 27 May 2025 00:06:36 +0000 https://earlybirdsinvest.com/bitcoin-utxo-signal-approaches-99-level-bullish-signal-or-profit-taking-setup/

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Este artículo también está disponible en español.

Bitcoin is trading less than 2.5% below its all-time high near $112,000, signaling growing momentum and the potential start of a new impulsive phase in price discovery. After weeks of steady gains and strong consolidation above the $100K level, BTC appears ready to break higher and extend its macro uptrend. The market is watching closely, as a clean move above $112K could trigger a wave of bullish continuation and renewed institutional interest.

Related Reading

On-chain insights from CryptoQuant add important context to this moment. Specifically, the analysis of UTXOs—Unspent Transaction Outputs—provides a deeper understanding of the state of unrealized profits across the network. UTXOs are the core technical structure that ensures a single bitcoin can only be spent once. But beyond that, they offer critical insight into the profitability of held coins.

Currently, the market is nearing the 99% threshold, meaning 99% of all BTC holdings are in profit. This level historically aligns with periods of market euphoria and strong uptrend, but can also signal potential overheating if sustained too long. As Bitcoin inches toward new highs, this metric reinforces the strength of the rally while reminding investors that such high profitability often comes with increased volatility.

Bitcoin Thrives In Volatile Times As Market Nears 99% Profit Threshold

Bitcoin is showing remarkable strength as it flirts with new highs this week, trading just below $112,000. While global markets react to rising U.S. Treasury yields and persistent inflation, Bitcoin appears to be thriving in the chaos, solidifying its role as both a risk asset and a macro hedge. As traditional markets face pressure, BTC continues to lead with resilience, even as geopolitical and policy-related uncertainty clouds investor sentiment.

Top analyst Darkfost shared fresh insights on Bitcoin’s on-chain condition, focusing on the utility of UTXOs (Unspent Transaction Outputs). UTXOs are the technical mechanism that ensures a single BTC can only be spent once on the blockchain. But beyond that, they serve as a powerful tool for assessing unrealized profits across all held BTC.

Bitcoin Euphoria Phase at 99% UTXOs in Profit | Source: Darkfost on X
Bitcoin Euphoria Phase at 99% UTXOs in Profit | Source: Darkfost on X

One key metric derived from UTXOs is the percentage of BTC supply in profit. Currently, Bitcoin is approaching the critical 99% threshold, meaning nearly all coins are in unrealized gain territory. Historically, this level is associated with periods of market euphoria and sustained uptrends, but it also comes with a warning: elevated unrealized profits often precede spikes in profit-taking.

While BTC’s structure remains bullish, macro uncertainty—especially around the Trump administration’s policy direction—keeps risk-on conviction muted. As Darkfost notes, “We’re not fully euphoric yet, but we’re entering a zone where late buyers should be cautious.”

If the 99% profit signal drops, it may trigger a wave of selling as gains shrink and weaker hands capitulate. For now, though, Bitcoin remains strong, and the uptrend is intact. The market is watching closely because in times like these, BTC tends to move first.

Related Reading

BTC Holds Steady Near Highs As Momentum Builds

Bitcoin is currently trading at $109,679 on the 4-hour chart, consolidating just below its all-time high after reclaiming short-term support. The price recently bounced off the 100 SMA ($105,586) and is now hovering above the 34 EMA ($108,280), signaling continued bullish momentum. All key moving averages are aligned to the upside, reflecting a strong and healthy trend.

BTC showing strength below ATH | Source: BTCUSDT chart on TradingView
BTC showing strength below ATH | Source: BTCUSDT chart on TradingView

Volume has remained relatively stable during the pullback and recovery, suggesting no major distribution phase is underway. The 50 SMA ($107,679) also acted as dynamic support during the recent dip, reinforcing the strength of the $107K–$108K zone.

The $103,600 level, previously a major resistance, continues to serve as solid structural support. As long as BTC remains above this zone, the broader uptrend remains intact. Short-term resistance now sits near the $110,200–$112,000 range. A breakout above this level would likely trigger the next leg higher, potentially toward the $120,000 mark.

Related Reading

With Bitcoin holding above key EMAs and moving averages on the 4-hour timeframe, bulls remain in control. If price continues to build above $108K, the likelihood of retesting and surpassing all-time highs grows significantly in the coming sessions.

Featured image from Dall-E, chart from TradingView

]]> https://earlybirdsinvest.com/bitcoin-utxo-signal-approaches-99-level-bullish-signal-or-profit-taking-setup/feed/ 0 38493 Bitcoin consolidates below all-time high as profit-taking, tariff risks cool price momentum https://earlybirdsinvest.com/bitcoin-consolidates-below-all-time-high-as-profit-taking-tariff-risks-cool-price-momentum/ https://earlybirdsinvest.com/bitcoin-consolidates-below-all-time-high-as-profit-taking-tariff-risks-cool-price-momentum/#respond Mon, 26 May 2025 21:48:04 +0000 https://earlybirdsinvest.com/bitcoin-consolidates-below-all-time-high-as-profit-taking-tariff-risks-cool-price-momentum/

Bitcoin (BTC) is experiencing a healthy consolidation phase after last week’s record high of $111,880, but it still faces threats from significant profit-taking movements.

According to a May 26 “Bitfinex Alpha” report, strong spot demand and steady exchange-traded fund (ETF) inflows lifted BTC more than 50% from early-April lows before President Donald Trump’s tariff threat on European Union imports triggered a risk-off move across global markets.

The macro shock and elevated leverage in perpetual futures sparked cascading liquidations, pushing the price below the $107,000 threshold within 36 hours.

However, this was a much-needed cooling movement. Futures funding flipped negative during the pullback, showing that traders quickly reduced directional exposure while open interest fell as forced sellers exited positions.

Profit-taking threatens momentum

Two seller groups drove the flow: dip buyers locking in substantial gains and previously underwater addresses exiting at breakeven.

Their combined activity created what the report described as an “overhead supply glut” that may stall price expansion without a corresponding uptick in inflows. Exchange data shows reduced incremental buying, while perpetual basis rates remain subdued after last week’s shakeout.

The analysis emphasizes that a period of sideways trading or mild retracement would reinforce market structure by flushing excess leverage and letting spot demand re-establish control.

Such consolidation has historically preceded fresh advances. Yet, the report cautioned that the depth of any pullback depends on macro events, including further clarity on the proposed tariffs and whether ETF allocations resume at a recent clip.

Futures reset sets trading range

Amid the macro uncertainty and profit-taking risks, the report expects Bitcoin to oscillate between last week’s $106,000 intraday low and the $111,000 area until fresh spot demand absorbs overhead supply or a deeper reset draws buyers lower.

Seven weekly green candles illustrate persistent upward momentum, the longest streak since October 2023. However, the report noted that such moves often cool as leverage normalizes.

On-chain data corroborate the slowdown. The cost basis for short-term holders (STH Realized Price) climbed to $95,164, and selling accelerated once the market reclaimed that level.

Short-term holders booked $11.4 billion of profit over the past 30 days, compared with just $1.2 billion in the prior month. Realized profit peaked at $747 million a day, a level exceeded on only about 8% of trading sessions in Bitcoin’s history.

The report then warned that the STH Realized Profit/Loss Ratio surged to territory typically associated with late-stage rallies. In this stage, heavy distribution could cap the upside if new capital does not arrive to absorb it.

Bitcoin Market Data

At the time of press 7:14 pm UTC on May. 26, 2025, Bitcoin is ranked #1 by market cap and the price is up 1.67% over the past 24 hours. Bitcoin has a market capitalization of $2.17 trillion with a 24-hour trading volume of $47.16 billion. Learn more about Bitcoin ›

Crypto Market Summary

At the time of press 7:14 pm UTC on May. 26, 2025, the total crypto market is valued at at $3.42 trillion with a 24-hour volume of $105.94 billion. Bitcoin dominance is currently at 63.46%. Learn more about the crypto market ›

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]]> https://earlybirdsinvest.com/bitcoin-consolidates-below-all-time-high-as-profit-taking-tariff-risks-cool-price-momentum/feed/ 0 38482 Bitcoin Profit-Taking Remains Healthy – Data Shows No Signs Of Overheating https://earlybirdsinvest.com/bitcoin-profit-taking-remains-healthy-data-shows-no-signs-of-overheating/ https://earlybirdsinvest.com/bitcoin-profit-taking-remains-healthy-data-shows-no-signs-of-overheating/#respond Sun, 25 May 2025 10:28:52 +0000 https://earlybirdsinvest.com/bitcoin-profit-taking-remains-healthy-data-shows-no-signs-of-overheating/

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Bitcoin is wrapping up the week with strength, trading above the $105,000 mark after a sharp rally that pushed prices to a new all-time high near $112,000. The move reignited bullish momentum across the market, with traders and analysts now turning their focus to what could be the next phase of this cycle.

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Despite the aggressive push higher, on-chain data suggests the market remains healthy. Top analyst Darkfost highlighted that net realized profits are still within normal levels for a bull run. According to his analysis, profit-taking is not a sign of weakness—it’s a necessary part of market structure during uptrends. “This is what keeps investors engaged and prevents parabolic exhaustion,” he noted.

The recent price action points to a potential shift in market dynamics, as Bitcoin breaks out of its post-halving consolidation phase. With weekly support forming above $105K and realized profit metrics staying in check, bulls are eyeing higher levels. If this momentum holds, the $112K rejection may only be a short-term hurdle. As always, volatility remains in play—but this week’s close sends a strong signal: the bull market structure is still intact.

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.

Bitcoin Net Realized P/L (BTC) | Source: Darkfost on X
Bitcoin Net Realized P/L (BTC) | Source: Darkfost on X

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.

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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.

BTC holding strong above $105K | Source: BTCUSDT chart on TradingView
BTC holding strong above $105K | Source: BTCUSDT chart on TradingView

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.

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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

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