CryptoQuant: Bitcoin Rally Pauses as Traders Lock In Gains; Healthy Correction Possible

# What CryptoQuant reported

Data analytics firm CryptoQuant says Bitcoin's recent surge is losing steam and that traders are taking profits. The firm continues to classify Bitcoin as being in a bull market because the price moved above its 365-day moving average — a technical threshold CryptoQuant identifies with previous bull-market starts.

# Why profit-taking matters now

Short-term holders show an average unrealized profit near 33%, the highest level since December 2024. CryptoQuant links similar margin levels in the past to increased likelihood of selling. The firm recorded a single-day realization of 25,700 BTC in profit — the largest such day so far in 2026 — one day after Bitcoin hit the recent eight-month high.

That pattern — a sharp move higher followed by concentrated realizations — often precedes a pullback. CryptoQuant says the rally still has upside, but momentum is weakening and a near-term correction is increasingly plausible.

# Support levels to watch

CryptoQuant did not forecast a precise downside, but it pointed to three concrete support levels where a correction could stabilize:

• 365-day moving average: around $80,000
• 200-day moving average: around $71,000
• On-chain realized price (traders' averaged acquisition price): around $67,000

The firm's conditional view: if these levels hold, a pullback would be a healthy consolidation inside a young bull market rather than a reversal of the uptrend.

# Recent context and drivers

Last October Bitcoin briefly set a record near $126,080 and then reversed following a major liquidation event that closed more than $19 billion in leveraged positions. The coin continued lower during the first half of the current year as the Federal Reserve signaled it would keep rates higher for longer and investors shifted capital into AI-related equities.

# How to read the signal

This report is a short-term market read, not a statement about fundamentals or long-term value. It highlights technical and on-chain signals: a bull-market technical trigger (365-day MA breach), concentrated unrealized gains among short-term holders, and a record day of profit realization. Those signals point to a higher chance of consolidation before any continuation of the rally.

# Practical takeaways for traders and observers

• Expect potential volatility and a pullback to the cited support zones if selling continues.
• Monitor short-term holder unrealized profit and realized-volume spikes for signs of further distribution.
• Treat a correction that respects the three support levels as consolidation within a bull phase rather than an automatic trend change.