Bitcoin Bull Market Faces Potential Correction
Bitcoin’s recent surge, which saw the cryptocurrency reach an eight-month high of $87,400, may be losing its upward momentum, according to insights from CryptoQuant, a prominent cryptocurrency analytics firm. While the overall trend suggests a bull market, various indicators point to a potential short-term correction.
Technical Indicators Signal Bullish Trends
CryptoQuant highlights that Bitcoin closed above its 365-day moving average last week, a key technical confirmation that a new bull market has commenced. The firm’s Bitcoin Bull Score Index currently stands at 90 out of 100, indicating an exceptionally strong bullish sentiment in the market.
Signs of Waning Momentum
Despite the bullish sentiment, certain on-chain indicators raise concerns about a slowdown in momentum. For instance, the unrealized profit margin for traders has reached 33%, marking the highest level since December 2024. Analysts suggest that this accumulation of unrealized profits could lead to increased selling pressure, as history shows that similar profit levels often result in profit-taking.
Evidently, profit-taking has already begun, with investors realizing approximately 25,700 BTC in profits on September 22, 2026. This figure represents the highest amount of profit-taking in a single day for the year, showcasing that traders are starting to capitalize on the price increase.
Altcoin Market Activity Surges
The report also notes significant activity in the altcoin market, where the number of transactions involving funds sent to exchanges surged to 76,000 within a week, involving 51,000 distinct investors. These levels have not been seen since mid-October 2025, shortly after Bitcoin achieved its last all-time high. A rise in deposit activity to exchanges is often a precursor to selling, suggesting that investors may be preparing to take profits soon.
Demand Indicators Show Weakening Interest
Looking at demand metrics, Bitcoin shows signs of weakening. Visible demand in the spot market has decreased by 170,000 BTC over the past month, while speculative interest in the futures market has also diminished. Demand in the futures market dropped from 164,000 BTC as of September 14 to just 16,000 BTC recently, emphasizing a significant slowdown.
Watch for Key Support Levels
In the event of a market correction, CryptoQuant outlines essential support levels to monitor. The first major support is the 365-day moving average, approximately at $80,000. Further support levels are indicated at the 200-day moving average near $71,000 and an on-chain price level around $67,000.
Disclaimer: This article is not investment advice.
