Bitcoin (BTC), 25,700 Profit-Taking Sell-Off Bomb..."Whales Dumped When Ants Cheered"

▲ Bitcoin (BTC), Cryptocurrency Whale / Gemini Generated Image

Bitcoin (BTC) has officially entered a new bull market by reclaiming its 365-day moving average, but short-term profit-taking sell-offs have reached their highest level this year, and spot demand has slowed, signaling short-term overheating and fatigue.

CriptoPotato reported on September 30 (local time), citing the latest market report from on-chain analytics platform CryptoQuant, that despite Bitcoin's bull market cycle indicator remaining in a strong bullish phase, upward momentum is slowing, and the risk of correction is increasing. CryptoQuant's Bull Score Index recorded 90 out of 100 points, staying in the 'extreme bullish' zone, but within the market, profit-taking movements due to sharp price increases are beginning to materialize.

On-chain, traders' unrealized profits soared to 33%, the highest since December 2024. In past cycles, selling pressure and price corrections followed sharp increases in investors' unrealized margins, making this a short-term warning signal. Indeed, on September 22 alone, profit-taking sell-offs totaling 25,700 BTC were confirmed, setting a new daily record for 2026. This indicates that market participants are actively realizing profits near the short-term peak.

Simultaneously, potential selling pressure is also becoming visible in the altcoin market. The number of unique wallet addresses depositing altcoins to exchanges surged to 51,000, the highest since October 2025. The act of transferring virtual assets to exchange wallets is typically interpreted as a key signal of supply distribution in preparation for market selling.

On the demand side, a short-term slowdown is also evident. Over the past 30 days, Bitcoin's apparent spot demand continued to contract, decreasing by 170,000 BTC. The increase in speculative futures demand, which led the price rally, also sharply declined from an increase of 164,000 BTC on September 14 to an increase of 16,000 BTC on September 29.

Despite the confirmation of a new bull market, the combination of large-scale profit-taking and decreased demand has put Bitcoin to the test for a short-term breather. Market attention is focused on whether profit-taking sell-offs can be successfully absorbed and spot buying interest can revive during the process of cooling down the overheating.

[Article Key Summary]

-CryptoQuant analyzed that while a Bitcoin (BTC) bull market was confirmed, fatigue signals were detected due to the largest profit-taking in 2026 and slowing demand.

-Traders' unrealized profits surged to 33%, and on September 22 alone, 25,700 BTC worth of profits were realized.

-Spot demand decreased by 170,000 BTC over 30 days, and altcoin deposits to exchanges surged, increasing short-term price correction pressure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*