While Bitcoin is still in a bull market, CryptoQuant diagnosed that a correction might be imminent as short-term traders' unrealized profits hit a 21-month high. According to The Block, CryptoQuant's Head of Research, Julio Moreno, released a report stating, "Recently, short-term traders' on-chain unrealized profits surged to 33%, the highest since December 2024. Historically, such levels of margin have prompted traders to take profits. Indeed, on the 22nd (local time), Bitcoin holders realized profits of 25,700 BTC. This is the largest single-day volume since 2026." He added, "Furthermore, Bitcoin demand is slowing down in both spot and futures markets. Without new demand, the uptrend is difficult to sustain. Although the bull market is currently being maintained, signs of fatigue are appearing. High profitability, record-breaking profit-taking in 2026, explosive altcoin inflows, and cooling demand suggest the possibility of a short-term correction." He continued, "If Bitcoin undergoes a correction, the 365-day moving average near $80,000 will serve as the first support level. Additionally, the 200-day moving average near $71,000 and the on-chain realized price near $67,000 will act as further support levels." He concluded, "As long as these support levels hold, a correction of this magnitude is a healthy correction within an early bull market."
