Two Signs Indicate Profit-Taking May End the 7-Week Rally
The post Two Signs Indicate Profit-Taking May End the 7-Week Rally appeared on BitcoinEthereumNews.com.
Bitcoin has posted seven consecutive weeks of gains, pushing its price above $100,000. However, new signals suggest this bullish streak might soon end. Identifying the precise moment of a price reversal is challenging. However, certain signs may indicate rising risks, particularly for investors who have not established strong positions yet. Two Signs Indicate Profit-Taking May End the 7-Week Rally The first notable sign is that wallets with large balances have stopped accumulating and have started distributing their coins. Glassnode data confirms this trend. In May, the accumulation score for wallets holding over 10,000 BTC dropped from around 0.8 to below 0.5. This shift is visually represented by a change in color from blue to orange. “The group of wallets holding the most BTC has started distributing,” Thuan Capital stated. Bitcoin Trend Accumulation Score by Cohort. Source: Glassnode Additionally, wallets between 1 BTC and 10,000 BTC show weaker accumulation behavior, as seen through gradually fading blue tones. Only wallets with less than 1 BTC are showing a clear shift from distribution to strong accumulation, triggered by Bitcoin reaching a new all-time high. These data points reflect a profit-taking tendency among large investors. At the same time, smaller retail investors appear driven by FOMO (fear of missing out) as they chase short-term opportunities. Another warning sign comes from Unspent Transaction Outputs (UTXOs). UTXOs are a technical mechanism that ensures each individual BTC can only be spent once on the blockchain. They also provide a way to evaluate unrealized profit across all unspent BTC. Bitcoin Euphoria Phase at 99% UTXOs in Profit. Source: CryptoQuant CryptoQuant data shows that when 99% of UTXOs are in profit, it usually signals a market overheating phase. Historically, such phases often precede price corrections. Whether the correction is short- or long-term, this signal still highlights a growing risk…
Filed under: News - @ May 27, 2025 8:26 am