Bitcoin Investors Aggressively Take Profits Amid Price Surge

Bitcoin (BTC) investors are increasingly taking profits following recent price surges, a behavior typically associated with the late stages of a bull market. Key points include:

The 7-day moving average net realized profit/loss for BTC has been positive since early 2024, peaking at $1 billion daily.
Despite a downturn between March and April 2025, profit-taking remained strong as BTC trades in the mid-$90,000 range.
High realized profits during price rises may indicate a late-stage bull market, drawing parallels to patterns seen in 2021.
The introduction of spot Bitcoin ETFs in January 2024 has changed market dynamics, yet profit-taking remains consistent with historical trends.
Potential scenarios include a sharp correction if high profit-taking persists or a market cycle transition if it decreases.

Current conditions suggest caution but not a definitive macro top, encouraging investors to focus on behavioral trends rather than just price.

Analyst Ali Martinez indicated that BTC might retest the $97,700 resistance level ahead of the Federal Open Market Committee meeting, which could lead to a short-term pullback. Concerns also arise regarding Bitcoin's supply scarcity, as on-chain data suggests a supply squeeze isn't imminent. Demand momentum remains negative, with market participants leaning towards short-term speculation instead of long-term holding. However, indicators like the Bitcoin Stochastic RSI show signs of renewed strength, supporting potential for new all-time highs. Current BTC price is $97,248, up 3.4% in 24 hours.